UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant To Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of report (Date of earliest event reported): October 31, 2012
PartnerRe Ltd.
(Exact Name of Registrant
as Specified in Charter)
Bermuda
(State or Other Jurisdiction of Incorporation)
001-14536 | Not Applicable | |
(Commission File Number) | (IRS Employer Identification No.) | |
Wellesley House, 90 Pitts Bay Road, Pembroke, Bermuda |
HM 08 | |
(Address of Principal Executive Offices) | (Zip Code) |
Registrants telephone number, including area code: (441) 292-0888
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02 Results of Operations and Financial Condition
On October 31, 2012, PartnerRe Ltd. issued a press release reporting its 2012 third quarter results. A copy of the press release, as well as a financial supplement, are attached hereto as Exhibits 99.1 and 99.2, respectively, to this Form 8-K and are hereby incorporated by reference to this Item 2.02.
As provided in General Instruction B.2 of Form 8-K, the information and exhibits contained in this Form 8-K are not deemed to be filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, are not otherwise subject to the liabilities of that section and are not incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, except as shall be expressly set forth by specific reference in such a filing.
Item 8.01 Other Events
On October 31, 2012, PartnerRe Ltd. issued a press release reporting that its Board of Directors has declared a dividend of $0.62 per common share. A copy of the press release, is attached as Exhibit 99.3, to this Form 8-K and is hereby incorporated by reference to this Item 8.01.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits.
Exhibit No. |
Description | |
99.1 | Press Release of PartnerRe Ltd., dated October 31, 2012 | |
99.2 | Financial Supplement | |
99.3 | Press Release of PartnerRe Ltd., dated October 31, 2012 |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
PartnerRe Ltd. (Registrant) | ||||||
Date: November 1, 2012 | By: | /S/ MARC WETHERHILL | ||||
Name: | Marc Wetherhill | |||||
Title: | Chief Legal Counsel |
Index to Exhibits
Exhibit No. |
Description | |
99.1 | Press Release of PartnerRe Ltd., dated October 31, 2012 | |
99.2 | Financial Supplement | |
99.3 | Press Release of PartnerRe Ltd., dated October 31, 2012 |
Exhibit 99.1
News Release |
PartnerRe Ltd. Reports Third Quarter and Nine Month 2012 Results
| Third Quarter Operating Earnings per share of $3.90; Net Income per share of $7.53 |
| Third Quarter Annualized Operating ROE of 18.4%; Annualized Net Income ROE of 35.5% |
| Nine Month Operating Earnings per share of $8.84; Net Income per share of $15.19 |
| Nine Month Annualized Operating ROE of 13.9%; Annualized Net Income ROE of 23.9% |
| Book Value of $99.54 per share, up 8.3% for the quarter and up 17.4% year-to-date. |
PEMBROKE, Bermuda, October 31, 2012 PartnerRe Ltd. (NYSE, Euronext: PRE) today reported net income of $486.7 million, or $7.53 per share for the third quarter of 2012. This net income includes net after-tax realized and unrealized gains on investments of $221.8 million, or $3.55 per share. Net income for the third quarter of 2011 was $180.1 million, or $2.43 per share, including net after-tax realized and unrealized gains on investments of $6.2 million, or $0.09 per share. The Company recorded operating earnings of $244.4 million, or $3.90 per share, for the third quarter of 2012. This compares to operating earnings of $164.5 million, or $2.41 per share, for the third quarter of 2011.
Net income for the first nine months of 2012 was $1,023.0 million, or $15.19 per share. This net income includes net after-tax realized and unrealized gains on investments of $399.4 million, or $6.21 per share. Net loss for the first nine months of 2011 was $502.6 million, or $7.88 per share, including net after-tax realized and unrealized losses on investments of $41.3 million, or $0.61 per share. Operating earnings for the first nine months of 2012 were $568.1 million, or $8.84 per share. This compares to an operating loss of $503.9 million, or $7.43 per share, for the first nine months of 2011.
Operating earnings or loss excludes net after-tax realized and unrealized investment gains and losses, net after-tax foreign exchange gains and losses, and certain net after-tax interest in results of equity investments, and is calculated after the payment of preferred dividends. All references to per share amounts in the text of this press release are on a fully diluted basis.
Commenting on results for the third quarter of 2012, PartnerRe President & Chief Executive Officer Costas Miranthis said, We had an excellent third quarter, generating an operating return on equity of 18%, driven by strong underwriting results and below average large loss experience. All in for the first nine months of 2012, our solid underwriting performance resulted in a Non-life combined ratio of 85.1% and an operating return on equity of 14%. While net investment income reflects the continued difficult investment environment, we recorded significant gains in our investment portfolio due to tightening credit spreads, improved equity markets and lower risk free rates. As a result we grew our book value per share over 8% in the quarter and 17% year-to-date.
PartnerRe Ltd. Wellesley House, 5th Floor 90 Pitts Bay Road Pembroke, Bermuda HM 08 |
Telephone +1 441 292 0888 Fax +1 441 292 6080 www.partnerre.com |
News Release |
Highlights for the third quarter and first nine months of 2012 compared to the same periods in 2011 include:
Results of operations:
| For the third quarter, net premiums written of $1.0 billion were down 3%, or up 1% on a constant foreign exchange basis, primarily related to positive prior year estimated premium adjustments in the North America sub-segment and new business in the Global (Non-U.S.) Specialty sub-segment. These increases were partially offset by a decrease in the Catastrophe sub-segments net premiums written due to the reductions in certain exposures and differences in the timing of renewals compared to the third quarter of 2011. For the first nine months of 2012, net premiums written were up 1%, or up 4% on a constant foreign exchange basis, due to new business across all sub-segments, except for the Catastrophe sub-segment which declined due to reductions in certain exposures. |
| For the third quarter, net premiums earned of $1.2 billion were down 4%, or up 1% on a constant foreign exchange basis. On a constant foreign exchange basis, net premiums earned increased primarily in the Global (Non-U.S.) Specialty sub-segment and the Life segment due to new business. These increases were partially offset by decreases in the Catastrophe sub-segment as described for net premiums written above. For the first nine months of 2012, net premiums earned were down 4%, or 1% on a constant foreign exchange basis, primarily due to the impact of cancelled and non-renewed business in the Global (Non-U.S.) P&C and Catastrophe sub-segments. These decreases were partially offset by new business primarily in the Global (Non-U.S.) Specialty sub-segment and the Life segment. |
| For the third quarter, the Non-life combined ratio was 80.7% and included 18.2 points (or $189 million) of net favorable loss development on prior accident years. For the first nine months of 2012, the Non-life combined ratio was 85.1% and included 17.2 points (or $468 million) of net favorable loss development on prior accident years. All Non-life sub-segments experienced net favorable development on prior accident years during the third quarter and first nine months of 2012, with the Global (Non-U.S.) Specialty and North America sub-segments contributing the most significantly. |
| For the third quarter and first nine months of 2012, net investment income of $135 million and $436 million, respectively, were down 15% and 7%, respectively, on a constant foreign exchange basis compared to the applicable prior year periods, primarily reflecting lower reinvestment rates. |
| For the third quarter and first nine months of 2012, pre-tax net realized and unrealized investment gains were $257 million and $488 million, respectively, and primarily related to the tightening of credit spreads and increases in the market value of equities. |
PartnerRe Ltd. Wellesley House, 5th Floor 90 Pitts Bay Road Pembroke, Bermuda HM 08 |
Telephone +1 441 292 0888 Fax +1 441 292 6080 www.partnerre.com |
News Release |
| For the third quarter, the effective tax rate on operating earnings and non-operating earnings was 11% and 13%, respectively. For the first nine months of 2012, the effective tax rate on operating earnings and non-operating earnings was 13% and 18%, respectively. |
Balance sheet and capitalization:
| Total investments, cash and funds held directly managed were $18.4 billion at September 30, 2012, up 3% compared to December 31, 2011. |
| Net Non-life loss and loss expense reserves were $10.5 billion at September 30, 2012, down 4% compared to December 31, 2011 primarily due to loss payments associated with the 2011 catastrophe events. |
| Net policy benefits for life and annuity contracts were $1.7 billion at September 30, 2012, up 4% when compared to December 31, 2011. |
| Total capital was $7.9 billion at September 30, 2012, up 8% from $7.3 billion at December 31, 2011. The increase was primarily driven by net income for the first nine months of 2012, partially offset by share repurchases and common and preferred dividend payments. |
| During the third quarter of 2012, the Company repurchased approximately 1.3 million common shares at a total cost of approximately $93 million. During the period October 1, 2012 through October 26, 2012, the Company repurchased approximately 153 thousand common shares at a total cost of approximately $12 million. During the third quarter of 2012, the Companys Board of Directors approved a share repurchase authorization of up to 6 million common shares. At October 31, 2012, approximately 5.7 million common shares remained under the current repurchase authorization. |
| Total shareholders equity was $7.1 billion at September 30, 2012, up 9% compared to $6.5 billion at December 31, 2011. The increase was driven by the factors described for total capital. |
| Book value per common share was $99.54 on a fully diluted basis at September 30, 2012, up 17% compared to $84.82 per diluted share at December 31, 2011. The increase was driven by the factors described for total capital and the accretive impact of share repurchases. |
Segment and sub-segment highlights for the third quarter and first nine months of 2012 compared to the same periods in 2011 include:
PartnerRe Ltd. Wellesley House, 5th Floor 90 Pitts Bay Road Pembroke, Bermuda HM 08 |
Telephone +1 441 292 0888 Fax +1 441 292 6080 www.partnerre.com |
News Release |
Non-life:
| For the third quarter, the North America and Global (Non-U.S.) Specialty sub-segments reported an increase in net premiums written compared to the third quarter of 2011 on a constant foreign exchange basis. These increases were partially offset by decreases in net premiums written compared to the third quarter of 2011 in the Catastrophe and Global (Non-U.S.) P&C sub-segments, on a constant foreign exchange basis. For the first nine months of 2012, all Non-life sub-segments, except for the Catastrophe sub-segment, reported an increase in net premiums written compared to the same period in 2011. |
| For the third quarter, the North America sub-segments net premiums written were up 8%, or 9% on a constant foreign exchange basis, primarily due to a higher level of positive prior year premium estimate adjustments in the casualty line and new business in the property line, which were partially offset by a lower level of agricultural premiums. This sub-segment reported a technical ratio of 99.7%, which included a charge of 25.4 points (or $85 million) related to the U.S. drought which was partially offset by 19.9 points (or $67 million) of net favorable prior year loss development. For the first nine months of 2012, the North America sub-segments net premiums written were up 6%, or 7% on a constant foreign exchange basis, primarily due to the same factors describing the third quarter. This sub-segment reported a technical ratio of 91.1%, which included a charge of 9.8 points (or $85 million) related to the U.S. drought which was partially offset by 19.4 points (or $167 million) of net favorable prior year loss development. |
| For the third quarter, the Global (Non-U.S.) P&C sub-segments net premiums written were down 15%, or 6% on a constant foreign exchange basis, due to the impact of cancellations and reduced treaty participations in prior periods in the property line of business. This sub-segment reported a technical ratio of 88.8%, which included 16.7 points (or $28 million) of net favorable prior year loss development. For the first nine months of 2012, the Global (Non-U.S.) P&C sub-segments net premiums written were up 3%, or 7% on a constant foreign exchange basis, primarily due to new business written in the motor line of business, which was partially offset by cancellations and reduced treaty participation in the property line of business. This sub-segment reported a technical ratio of 90.2%, which included 15.0 points (or $74 million) of net favorable prior year loss development. |
| For the third quarter, the Global (Non-U.S.) Specialty sub-segments net premiums written were down 1%, or up 4% on a constant foreign exchange basis primarily due to new business in the marine line of business which was partially offset by non-renewals and increased retentions in the energy and aviation/space lines of business. This sub-segment reported a technical ratio of 66.1%, which included 25.0 points (or $91 million) of net favorable prior year loss development. For the first nine months of |
PartnerRe Ltd. Wellesley House, 5th Floor 90 Pitts Bay Road Pembroke, Bermuda HM 08 |
Telephone +1 441 292 0888 Fax +1 441 292 6080 www.partnerre.com |
News Release |
2012, the Global (Non-U.S.) Specialty sub-segments net premiums written were up 9%, or 12% on a constant foreign exchange basis, primarily due to new business in the marine, specialty property, and agriculture lines of business. This sub-segment reported a technical ratio of 78.4%, which included 19.8 points (or $205 million) of net favorable prior year loss development. |
| For the third quarter, the Catastrophe sub-segments net premiums written were down 23% primarily due to reductions in certain exposures and differences in the timing of renewals compared to the third quarter of 2011, which was partially offset by new business written in non-peak catastrophe zones. This sub-segment reported a technical ratio of 32.1%, which included 1.7 points (or $3 million) of net favorable prior year loss development. For the first nine months of 2012, the Catastrophe sub-segments net premiums written were down 21%, primarily due to the non-renewal of certain business at January 1 and April 1 and a reduction in reinstatement premiums, which were partially offset by new business. This sub-segment reported a technical ratio of 26.5%, which included 6.5 points (or $22 million) of net favorable prior year loss development. |
Life:
| For the third quarter, the Life segments net premiums written were down 4%, or up 5% on a constant foreign exchange basis primarily due to new longevity business written in the fourth quarter of 2011. This increase in net premiums written, on a constant foreign exchange basis, was partially offset by decreases in mortality business. For the first nine months of 2012, the Life segments net premiums written were up 1%, or 6% on a constant foreign exchange basis, primarily due to the same factors describing the third quarter. |
| The Life allocated underwriting result, which includes allocated investment income and operating expenses, increased to $15 million in the third quarter of 2012 compared to $9 million in the same period of 2011. The increase was primarily due to favorable development, which was partially offset by a decrease in allocated investment income. The Life allocated underwriting result increased to $42 million for the first nine months of 2012, compared to $32 million in the same period of 2011. The increase was primarily due to favorable development, which was partially offset by an increased level of claims activity related to certain mortality business. |
Corporate and Other:
| For the third quarter, investment and capital markets activities contributed income of $381 million to pre-tax net income, excluding investment income allocated to the Life segment. Of this amount, income of $119 million was included in pre-tax operating |
PartnerRe Ltd. Wellesley House, 5th Floor 90 Pitts Bay Road Pembroke, Bermuda HM 08 |
Telephone +1 441 292 0888 Fax +1 441 292 6080 www.partnerre.com |
News Release |
earnings and an additional $262 million in net realized and unrealized gains on investments and earnings from equity investee companies was included in pre-tax non-operating income. For the first nine months of 2012, investment and capital markets activities contributed income of $879 million to pre-tax net income, excluding investment income allocated to the Life segment. Of this amount, income of $382 million was included in pre-tax operating earnings and an additional $497 million in net realized and unrealized gains on investments and earnings from equity investee companies was included in pre-tax non-operating income. |
Separately, as announced by the Company today, the Board of Directors declared a quarterly dividend of $0.62 per common share. The dividend will be payable on November 30, 2012, to common shareholders of record on November 19, 2012, with the stock trading ex-dividend commencing November 15, 2012.
The Company has posted its third quarter 2012 financial supplement on its website www.partnerre.com in the Investor Relations section on the Financial Reports page under Supplementary Financial Data, which includes a reconciliation of GAAP and non-GAAP measures.
The Company will hold a dial-in conference call and question and answer session with investors at 10 a.m. Eastern tomorrow, November 1. Investors and analysts are encouraged to call in 15 minutes prior to the commencement of the call. The conference call can be accessed by dialing 800-344-6698 or, from outside the United States, by dialing 785-830-7979. The media are invited to listen to the call live over the Internet on the Investor Relations section of PartnerRes web site, www.partnerre.com. To listen to the webcast, please log on to the broadcast at least five minutes prior to the start.
Net income/loss per share is defined as net income/loss available to common shareholders divided by the weighted average number of fully diluted shares outstanding for the period. Net income/loss available to common shareholders is defined as net income/loss less preferred dividends. Operating earnings/loss is defined as net income/loss available to common shareholders excluding after-tax net realized and unrealized gains/losses on investments, after-tax net foreign exchange gains/losses and certain after-tax interest in earnings/losses of equity investments. Operating earnings/loss per share is defined as operating earnings/loss divided by the weighted average number of fully diluted shares outstanding for the period.
PartnerRe Ltd. Wellesley House, 5th Floor 90 Pitts Bay Road Pembroke, Bermuda HM 08 |
Telephone +1 441 292 0888 Fax +1 441 292 6080 www.partnerre.com |
News Release |
The Company uses operating earnings, diluted operating earnings per share and annualized operating return on beginning diluted book value per common and common share equivalents outstanding to measure performance, as these measures focus on the underlying fundamentals of our operations without the impact of after-tax net realized and unrealized gains/losses on investments, after-tax net foreign exchange gains/losses, and the after-tax interest in earnings/losses of equity investments, where the investees operations are not insurance or reinsurance related and where the Company does not control the investee companies activities. The Company uses technical ratio and technical result as measures of underwriting performance. The technical ratio is defined as the sum of the loss and acquisition ratios. These metrics exclude other operating expenses. The Company also uses combined ratio to measure results for the Non-life segment. The combined ratio is the sum of the technical and other operating expense ratios. The Company uses allocated underwriting result as a measure of underwriting performance for its Life operations. This metric is defined as net premiums earned, other income or loss and allocated net investment income less life policy benefits, acquisition costs and other operating expenses. The Company uses total capital, which is defined as total shareholders equity, long-term debt, senior notes and CENts, to manage the capital structure of the Company.
PartnerRe Ltd. is a leading global reinsurer, providing multi-line reinsurance to insurance companies. The Company, through its wholly owned subsidiaries, also offers capital markets products that include weather and credit protection to financial, industrial and service companies. Risks reinsured include property, casualty, motor, agriculture, aviation/space, catastrophe, credit/surety, engineering, energy, marine, specialty property, specialty casualty, multiline and other lines, mortality, longevity and health, and alternative risk products. For the year ended December 31, 2011, total revenues were $5.4 billion. At September 30, 2012, total assets were $23.6 billion, total capital was $7.9 billion and total shareholders equity was $7.1 billion.
PartnerRe on the Internet: www.partnerre.com
Forward-looking statements contained in this press release are based on the Companys assumptions and expectations concerning future events and financial performance and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements are subject to significant business, economic and competitive risks and uncertainties that could cause actual results to differ materially from those reflected in the forward-looking statements. PartnerRes forward-looking statements could be affected by numerous foreseeable and unforeseeable events and developments such as exposure to catastrophe, or other large property and casualty losses, credit, interest, currency and other risks associated with the Companys investment portfolio, adequacy of reserves, levels and pricing of new and renewal business achieved, changes in accounting policies, risks associated
PartnerRe Ltd. Wellesley House, 5th Floor 90 Pitts Bay Road Pembroke, Bermuda HM 08 |
Telephone +1 441 292 0888 Fax +1 441 292 6080 www.partnerre.com |
News Release |
with implementing business strategies, and other factors identified in the Companys filings with the Securities and Exchange Commission. In light of the significant uncertainties inherent in the forward-looking information contained herein, readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the dates on which they are made. The Company disclaims any obligation to publicly update or revise any forward-looking information or statements.
Contacts: | PartnerRe Ltd. (441) 292-0888 Investor Contact: Robin Sidders Media Contact: Celia Powell |
Sard Verbinnen & Co. (212) 687-8080 Drew Brown/Daniel Goldstein |
PartnerRe Ltd. Wellesley House, 5th Floor 90 Pitts Bay Road Pembroke, Bermuda HM 08 |
Telephone +1 441 292 0888 Fax +1 441 292 6080 www.partnerre.com |
PartnerRe Ltd.
Consolidated Statements of Operations and Comprehensive Income (Loss)
(Expressed in thousands of U.S. dollars, except share and per share data)
(Unaudited)
For the three months ended September 30, 2012 |
For the three months ended September 30, 2011 |
For the nine months ended September 30, 2012 |
For the nine months ended September 30, 2011 |
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Revenues |
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Gross premiums written |
$ | 1,056,076 | $ | 1,095,326 | $ | 3,786,802 | $ | 3,735,091 | ||||||||
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Net premiums written |
$ | 1,043,240 | $ | 1,079,557 | $ | 3,652,571 | $ | 3,606,444 | ||||||||
Decrease (increase) unearned premiums |
193,851 | 214,762 | (334,772 | ) | (140,091 | ) | ||||||||||
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Net premiums earned |
1,237,091 | 1,294,319 | 3,317,799 | 3,466,353 | ||||||||||||
Net investment income |
135,266 | 163,647 | 435,669 | 473,608 | ||||||||||||
Net realized and unrealized investment gains (losses) |
257,429 | 26,139 | 488,296 | (7,860 | ) | |||||||||||
Other income |
2,744 | 1,434 | 8,143 | 4,843 | ||||||||||||
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Total revenues |
1,632,530 | 1,485,539 | 4,249,907 | 3,936,944 | ||||||||||||
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Expenses |
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Losses and loss expenses and life policy benefits |
721,137 | 881,626 | 2,003,759 | 3,303,366 | ||||||||||||
Acquisition costs |
247,058 | 262,489 | 691,388 | 699,589 | ||||||||||||
Other operating expenses |
94,697 | 103,822 | 299,055 | 321,813 | ||||||||||||
Interest expense |
12,224 | 12,216 | 36,668 | 36,730 | ||||||||||||
Amortization of intangible assets |
8,893 | 9,520 | 26,679 | 27,512 | ||||||||||||
Net foreign exchange losses (gains) |
2,015 | (10,587 | ) | (3,165 | ) | (20,020 | ) | |||||||||
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Total expenses |
1,086,024 | 1,259,086 | 3,054,384 | 4,368,990 | ||||||||||||
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Income (loss) before taxes and interest in earnings (losses) of equity investments |
546,506 | 226,453 | 1,195,523 | (432,046 | ) | |||||||||||
Income tax expense |
64,149 | 41,803 | 181,458 | 65,632 | ||||||||||||
Interest in earnings (losses) of equity investments |
4,349 | (4,527 | ) | 8,929 | (4,970 | ) | ||||||||||
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Net income (loss) |
$ | 486,706 | $ | 180,123 | $ | 1,022,994 | $ | (502,648 | ) | |||||||
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Preferred dividends |
$ | 15,405 | $ | 14,352 | $ | 46,216 | $ | 31,614 | ||||||||
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Operating earnings (loss) available to common shareholders |
$ | 244,406 | $ | 164,498 | $ | 568,119 | $ | (503,921 | ) | |||||||
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Comprehensive income (loss), net of tax |
$ | 518,871 | $ | 126,271 | $ | 1,053,153 | $ | (514,571 | ) | |||||||
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Per share data: |
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Earnings (loss) per common share: |
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Basic operating earnings (loss) |
$ | 3.95 | $ | 2.43 | $ | 8.92 | $ | (7.43 | ) | |||||||
Net realized and unrealized investment gains (losses), net of tax |
3.59 | 0.09 | 6.27 | (0.61 | ) | |||||||||||
Net foreign exchange gains, net of tax |
0.02 | | 0.02 | 0.24 | ||||||||||||
Interest in earnings (losses) of equity investments, net of tax |
0.06 | (0.07 | ) | 0.13 | (0.08 | ) | ||||||||||
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Basic net income (loss) |
$ | 7.62 | $ | 2.45 | $ | 15.34 | $ | (7.88 | ) | |||||||
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Weighted average number of common shares outstanding |
61,837,328 | 67,743,296 | 63,679,114 | 67,788,427 | ||||||||||||
Diluted operating earnings (loss) |
$ | 3.90 | $ | 2.41 | $ | 8.84 | $ | (7.43 | ) | |||||||
Net realized and unrealized investment gains (losses), net of tax |
3.55 | 0.09 | 6.21 | (0.61 | ) | |||||||||||
Net foreign exchange gains, net of tax |
0.02 | | 0.01 | 0.24 | ||||||||||||
Interest in earnings (losses) of equity investments, net of tax |
0.06 | (0.07 | ) | 0.13 | (0.08 | ) | ||||||||||
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Diluted net income (loss) |
$ | 7.53 | $ | 2.43 | $ | 15.19 | $ | (7.88 | ) | |||||||
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Weighted average number of common shares and common share equivalents outstanding |
62,606,761 | 68,181,982 | 64,284,125 | 67,788,427 | ||||||||||||
Dividends declared per common share |
$ | 0.62 | $ | 0.60 | $ | 1.86 | $ | 1.75 |
PartnerRe Ltd.
Consolidated Balance Sheets
(Expressed in thousands of U.S. dollars, except per share and parenthetical share and per share data)
(Unaudited)
September 30, 2012 |
December 31, 2011 |
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Assets |
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Investments: |
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Fixed maturities, trading securities, at fair value |
$ | 14,338,499 | $ | 13,941,829 | ||||
Short-term investments, trading securities, at fair value |
161,137 | 42,571 | ||||||
Equities, trading securities, at fair value |
1,071,528 | 944,691 | ||||||
Other invested assets |
341,555 | 358,154 | ||||||
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Total investments |
15,912,719 | 15,287,245 | ||||||
Funds held directly managed |
1,188,186 | 1,268,010 | ||||||
Cash and cash equivalents, at fair value, which approximates amortized cost |
1,336,362 | 1,342,257 | ||||||
Accrued investment income |
175,066 | 189,074 | ||||||
Reinsurance balances receivable |
2,329,907 | 2,059,976 | ||||||
Reinsurance recoverable on paid and unpaid losses |
369,960 | 397,788 | ||||||
Funds held by reinsured companies |
805,178 | 796,290 | ||||||
Deferred acquisition costs |
602,660 | 547,202 | ||||||
Deposit assets |
256,587 | 241,513 | ||||||
Net tax assets |
34,547 | 66,574 | ||||||
Goodwill |
455,533 | 455,533 | ||||||
Intangible assets |
107,188 | 133,867 | ||||||
Other assets |
66,237 | 70,044 | ||||||
|
|
|
|
|||||
Total assets |
$ | 23,640,130 | $ | 22,855,373 | ||||
|
|
|
|
|||||
Liabilities |
||||||||
Unpaid losses and loss expenses |
$ | 10,761,302 | $ | 11,273,091 | ||||
Policy benefits for life and annuity contracts |
1,703,147 | 1,645,662 | ||||||
Unearned premiums |
1,810,881 | 1,448,841 | ||||||
Other reinsurance balances payable |
504,820 | 443,873 | ||||||
Deposit liabilities |
255,986 | 249,382 | ||||||
Net tax liabilities |
356,851 | 297,153 | ||||||
Accounts payable, accrued expenses and other |
347,152 | 208,840 | ||||||
Debt related to senior notes |
750,000 | 750,000 | ||||||
Debt related to capital efficient notes |
70,989 | 70,989 | ||||||
|
|
|
|
|||||
Total liabilities |
16,561,128 | 16,387,831 | ||||||
|
|
|
|
|||||
Shareholders Equity |
||||||||
Common shares (par value $1.00; issued: 2012, 85,204,067 shares; 2011, 84,766,693 shares) |
85,204 | 84,767 | ||||||
Preferred shares (par value $1.00; issued and outstanding: 2012 and 2011, 35,750,000 shares; aggregate liquidation value: 2012 and 2011, $893,750) |
35,750 | 35,750 | ||||||
Additional paid-in capital |
3,840,641 | 3,803,796 | ||||||
Accumulated other comprehensive income (loss): |
||||||||
Currency translation adjustment |
35,309 | 4,267 | ||||||
Other accumulated comprehensive loss |
(17,794 | ) | (16,911 | ) | ||||
Retained earnings |
4,893,729 | 4,035,103 | ||||||
Common shares held in treasury, at cost (2012, 23,837,410 shares; 2011, 19,444,365 shares) |
(1,793,837 | ) | (1,479,230 | ) | ||||
|
|
|
|
|||||
Total shareholders equity |
7,079,002 | 6,467,542 | ||||||
|
|
|
|
|||||
Total liabilities and shareholders equity |
$ | 23,640,130 | $ | 22,855,373 | ||||
|
|
|
|
|||||
Shareholders Equity Per Common Share (excluding preferred shares: 2012 and 2011, $893,750) |
$ | 100.79 | $ | 85.33 | ||||
|
|
|
|
|||||
Diluted Book Value Per Common Share and Common Share Equivalents Outstanding (assuming exercise of all share-based awards) |
$ | 99.54 | $ | 84.82 | ||||
|
|
|
|
|||||
Number of Common Share and Common Share Equivalents Outstanding |
62,136,090 | 65,715,708 | ||||||
|
|
|
|
PartnerRe Ltd.
Segment Information
(Expressed in millions of U.S. dollars)
(Unaudited)
For the three months ended September 30, 2012
North America |
Global (Non-U.S.) P&C |
Global (Non-U.S.) Specialty |
Catastrophe | Total Non-life segment |
Life segment |
Corporate and Other |
Total | |||||||||||||||||||||||||
Gross premiums written |
$ | 311 | $ | 123 | $ | 360 | $ | 75 | $ | 869 | $ | 187 | $ | | $ | 1,056 | ||||||||||||||||
Net premiums written |
$ | 311 | $ | 122 | $ | 354 | $ | 69 | $ | 856 | $ | 187 | $ | | $ | 1,043 | ||||||||||||||||
Decrease in unearned premiums |
24 | 50 | 9 | 99 | 182 | 8 | 4 | 194 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Net premiums earned |
$ | 335 | $ | 172 | $ | 363 | $ | 168 | $ | 1,038 | $ | 195 | $ | 4 | $ | 1,237 | ||||||||||||||||
Losses and loss expenses and life policy benefits |
(251 | ) | (110 | ) | (161 | ) | (39 | ) | (561 | ) | (157 | ) | (3 | ) | (721 | ) | ||||||||||||||||
Acquisition costs |
(83 | ) | (42 | ) | (79 | ) | (15 | ) | (219 | ) | (27 | ) | (1 | ) | (247 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Technical result |
$ | 1 | $ | 20 | $ | 123 | $ | 114 | $ | 258 | $ | 11 | $ | | $ | 269 | ||||||||||||||||
Other income |
1 | 1 | 1 | 3 | ||||||||||||||||||||||||||||
Other operating expenses |
(58 | ) | (12 | ) | (25 | ) | (95 | ) | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Underwriting result |
$ | 201 | $ | | n/a | $ | 177 | |||||||||||||||||||||||||
Net investment income |
15 | 120 | 135 | |||||||||||||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||||||||||
Allocated underwriting result (1) |
$ | 15 | n/a | n/a | ||||||||||||||||||||||||||||
Net realized and unrealized investment gains |
257 | 257 | ||||||||||||||||||||||||||||||
Interest expense |
(12 | ) | (12 | ) | ||||||||||||||||||||||||||||
Amortization of intangible assets |
(9 | ) | (9 | ) | ||||||||||||||||||||||||||||
Net foreign exchange losses |
(2 | ) | (2 | ) | ||||||||||||||||||||||||||||
Income tax expense |
(64 | ) | (64 | ) | ||||||||||||||||||||||||||||
Interest in earnings of equity investments |
5 | 5 | ||||||||||||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||||||||||
Net income |
n/a | $ | 487 | |||||||||||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||||||||||
Loss ratio (2) |
74.9 | % | 63.9 | % | 44.4 | % | 23.3 | % | 54.1 | % | ||||||||||||||||||||||
Acquisition ratio (3) |
24.8 | 24.9 | 21.7 | 8.8 | 21.1 | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Technical ratio (4) |
99.7 | % | 88.8 | % | 66.1 | % | 32.1 | % | 75.2 | % | ||||||||||||||||||||||
Other operating expense ratio (5) |
5.5 | |||||||||||||||||||||||||||||||
|
|
|||||||||||||||||||||||||||||||
Combined ratio (6) |
80.7 | % | ||||||||||||||||||||||||||||||
|
|
For the three months ended September 30, 2011
North America |
Global (Non-U.S.) P&C |
Global (Non-U.S.) Specialty |
Catastrophe | Total Non-life segment |
Life segment |
Corporate and Other |
Total | |||||||||||||||||||||||||
Gross premiums written |
$ | 288 | $ | 144 | $ | 368 | $ | 95 | $ | 895 | $ | 194 | $ | 6 | $ | 1,095 | ||||||||||||||||
Net premiums written |
$ | 287 | $ | 144 | $ | 360 | $ | 89 | $ | 880 | $ | 194 | $ | 6 | $ | 1,080 | ||||||||||||||||
Decrease in unearned premiums |
42 | 49 | 2 | 110 | 203 | 9 | 2 | 214 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Net premiums earned |
$ | 329 | $ | 193 | $ | 362 | $ | 199 | $ | 1,083 | $ | 203 | $ | 8 | $ | 1,294 | ||||||||||||||||
Losses and loss expenses and life policy benefits |
(192 | ) | (102 | ) | (247 | ) | (169 | ) | (710 | ) | (168 | ) | (4 | ) | (882 | ) | ||||||||||||||||
Acquisition costs |
(80 | ) | (52 | ) | (82 | ) | (15 | ) | (229 | ) | (33 | ) | | (262 | ) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Technical result |
$ | 57 | $ | 39 | $ | 33 | $ | 15 | $ | 144 | $ | 2 | $ | 4 | $ | 150 | ||||||||||||||||
Other income |
1 | | | 1 | ||||||||||||||||||||||||||||
Other operating expenses |
(69 | ) | (12 | ) | (23 | ) | (104 | ) | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Underwriting result |
$ | 76 | $ | (10 | ) | n/a | $ | 47 | ||||||||||||||||||||||||
Net investment income |
19 | 145 | 164 | |||||||||||||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||||||||||
Allocated underwriting result (1) |
$ | 9 | n/a | n/a | ||||||||||||||||||||||||||||
Net realized and unrealized investment gains |
26 | 26 | ||||||||||||||||||||||||||||||
Interest expense |
(12 | ) | (12 | ) | ||||||||||||||||||||||||||||
Amortization of intangible assets |
(9 | ) | (9 | ) | ||||||||||||||||||||||||||||
Net foreign exchange gains |
11 | 11 | ||||||||||||||||||||||||||||||
Income tax expense |
(42 | ) | (42 | ) | ||||||||||||||||||||||||||||
Interest in losses of equity investments |
(5 | ) | (5 | ) | ||||||||||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||||||||||
Net income |
n/a | $ | 180 | |||||||||||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||||||||||
Loss ratio (2) |
58.4 | % | 52.9 | % | 68.3 | % | 85.0 | % | 65.6 | % | ||||||||||||||||||||||
Acquisition ratio (3) |
24.3 | 26.9 | 22.7 | 7.4 | 21.1 | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Technical ratio (4) |
82.7 | % | 79.8 | % | 91.0 | % | 92.4 | % | 86.7 | % | ||||||||||||||||||||||
Other operating expense ratio (5) |
6.4 | |||||||||||||||||||||||||||||||
|
|
|||||||||||||||||||||||||||||||
Combined ratio (6) |
93.1 | % | ||||||||||||||||||||||||||||||
|
|
(1) | Allocated underwriting result is defined as net premiums earned, other income or loss and allocated net investment income less life policy benefits, acquisition costs and other operating expenses. |
(2) | Loss ratio is obtained by dividing losses and loss expenses by net premiums earned. |
(3) | Acquisition ratio is obtained by dividing acquisition costs by net premiums earned. |
(4) | Technical ratio is defined as the sum of the loss ratio and the acquisition ratio. |
(5) | Other operating expense ratio is obtained by dividing other operating expenses by net premiums earned. |
(6) | Combined ratio is defined as the sum of the technical ratio and the other operating expense ratio. |
PartnerRe Ltd.
Segment Information
(Expressed in millions of U.S. dollars)
(Unaudited)
For the nine months ended September 30, 2012
North America |
Global (Non-U.S.) P&C |
Global (Non-U.S.) Specialty |
Catastrophe | Total Non-life segment |
Life segment |
Corporate and Other |
Total | |||||||||||||||||||||||||
Gross premiums written |
$ | 924 | $ | 600 | $ | 1,178 | $ | 475 | $ | 3,177 | $ | 604 | $ | 6 | $ | 3,787 | ||||||||||||||||
Net premiums written |
$ | 922 | $ | 596 | $ | 1,098 | $ | 429 | $ | 3,045 | $ | 601 | $ | 6 | $ | 3,652 | ||||||||||||||||
Increase in unearned premiums |
(59 | ) | (100 | ) | (64 | ) | (98 | ) | (321 | ) | (12 | ) | (1 | ) | (334 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Net premiums earned |
$ | 863 | $ | 496 | $ | 1,034 | $ | 331 | $ | 2,724 | $ | 589 | $ | 5 | $ | 3,318 | ||||||||||||||||
Losses and loss expenses and life policy benefits |
(568 | ) | (327 | ) | (569 | ) | (58 | ) | (1,522 | ) | (479 | ) | (3 | ) | (2,004 | ) | ||||||||||||||||
Acquisition costs |
(218 | ) | (120 | ) | (241 | ) | (30 | ) | (609 | ) | (82 | ) | | (691 | ) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Technical result |
$ | 77 | $ | 49 | $ | 224 | $ | 243 | $ | 593 | $ | 28 | $ | 2 | $ | 623 | ||||||||||||||||
Other income |
2 | 3 | 3 | 8 | ||||||||||||||||||||||||||||
Other operating expenses |
(187 | ) | (38 | ) | (74 | ) | (299 | ) | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Underwriting result |
$ | 408 | $ | (7 | ) | n/a | $ | 332 | ||||||||||||||||||||||||
Net investment income |
49 | 387 | 436 | |||||||||||||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||||||||||
Allocated underwriting result (1) |
$ | 42 | n/a | n/a | ||||||||||||||||||||||||||||
Net realized and unrealized investment gains |
488 | 488 | ||||||||||||||||||||||||||||||
Interest expense |
(37 | ) | (37 | ) | ||||||||||||||||||||||||||||
Amortization of intangible assets |
(27 | ) | (27 | ) | ||||||||||||||||||||||||||||
Net foreign exchange gains |
3 | 3 | ||||||||||||||||||||||||||||||
Income tax expense |
(181 | ) | (181 | ) | ||||||||||||||||||||||||||||
Interest in earnings of equity investments |
9 | 9 | ||||||||||||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||||||||||
Net income |
n/a | $ | 1,023 | |||||||||||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||||||||||
Loss ratio (2) |
65.9 | % | 65.9 | % | 55.1 | % | 17.4 | % | 55.9 | % | ||||||||||||||||||||||
Acquisition ratio (3) |
25.2 | 24.3 | 23.3 | 9.1 | 22.3 | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Technical ratio (4) |
91.1 | % | 90.2 | % | 78.4 | % | 26.5 | % | 78.2 | % | ||||||||||||||||||||||
Other operating expense ratio (5) |
6.9 | |||||||||||||||||||||||||||||||
|
|
|||||||||||||||||||||||||||||||
Combined ratio (6) |
85.1 | % | ||||||||||||||||||||||||||||||
|
|
For the nine months ended September 30, 2011
North America |
Global (Non-U.S.) P&C |
Global (Non-U.S.) Specialty |
Catastrophe | Total Non-life segment |
Life segment |
Corporate and Other |
Total | |||||||||||||||||||||||||
Gross premiums written |
$ | 868 | $ | 585 | $ | 1,092 | $ | 581 | $ | 3,126 | $ | 597 | $ | 12 | $ | 3,735 | ||||||||||||||||
Net premiums written |
$ | 868 | $ | 581 | $ | 1,007 | $ | 542 | $ | 2,998 | $ | 596 | $ | 12 | $ | 3,606 | ||||||||||||||||
(Increase) decrease in unearned premiums |
(18 | ) | (14 | ) | 14 | (110 | ) | (128 | ) | (8 | ) | (4 | ) | (140 | ) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Net premiums earned |
$ | 850 | $ | 567 | $ | 1,021 | $ | 432 | $ | 2,870 | $ | 588 | $ | 8 | $ | 3,466 | ||||||||||||||||
Losses and loss expenses and life policy benefits |
(556 | ) | (379 | ) | (675 | ) | (1,209 | ) | (2,819 | ) | (479 | ) | (5 | ) | (3,303 | ) | ||||||||||||||||
Acquisition costs |
(210 | ) | (145 | ) | (240 | ) | (16 | ) | (611 | ) | (89 | ) | | (700 | ) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Technical result |
$ | 84 | $ | 43 | $ | 106 | $ | (793 | ) | $ | (560 | ) | $ | 20 | $ | 3 | $ | (537 | ) | |||||||||||||
Other income |
4 | | 1 | 5 | ||||||||||||||||||||||||||||
Other operating expenses |
(206 | ) | (38 | ) | (78 | ) | (322 | ) | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Underwriting result |
$ | (762 | ) | $ | (18 | ) | n/a | $ | (854 | ) | ||||||||||||||||||||||
Net investment income |
50 | 424 | 474 | |||||||||||||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||||||||||
Allocated underwriting result (1) |
$ | 32 | n/a | n/a | ||||||||||||||||||||||||||||
Net realized and unrealized investment losses |
(8 | ) | (8 | ) | ||||||||||||||||||||||||||||
Interest expense |
(37 | ) | (37 | ) | ||||||||||||||||||||||||||||
Amortization of intangible assets |
(27 | ) | (27 | ) | ||||||||||||||||||||||||||||
Net foreign exchange gains |
20 | 20 | ||||||||||||||||||||||||||||||
Income tax expense |
(66 | ) | (66 | ) | ||||||||||||||||||||||||||||
Interest in losses of equity investments |
(5 | ) | (5 | ) | ||||||||||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||||||||||
Net loss |
n/a | $ | (503 | ) | ||||||||||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||||||||||
Loss ratio (2) |
65.5 | % | 66.8 | % | 66.1 | % | 279.9 | % | 98.2 | % | ||||||||||||||||||||||
Acquisition ratio (3) |
24.6 | 25.7 | 23.5 | 3.5 | 21.3 | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Technical ratio (4) |
90.1 | % | 92.5 | % | 89.6 | % | 283.4 | % | 119.5 | % | ||||||||||||||||||||||
Other operating expense ratio (5) |
7.2 | |||||||||||||||||||||||||||||||
|
|
|||||||||||||||||||||||||||||||
Combined ratio (6) |
126.7 | % | ||||||||||||||||||||||||||||||
|
|
Exhibit 99.2
PartnerRe Ltd.
Financial Supplement
Financial Information
as at September 30, 2012
(unaudited)
The following financial supplement is provided to assist in your understanding of
PartnerRe Ltd.
This report is for information purposes only. It should be read in conjunction with
documents filed with the SEC by PartnerRe Ltd., including the Companys Annual
Report on Form 10-K/A and Quarterly Reports on Form 10-Q.
PartnerRe Ltd.
Financial Supplement - September 30, 2012
Table of Contents
Page | ||||
Regulation G and Basis of Presentation |
||||
Consolidated Financial Statements |
||||
Consolidated Income Statements |
1-2 | |||
Condensed Consolidated Balance Sheets |
3 | |||
Condensed Consolidated Statements of Cash Flows |
4-5 | |||
Consolidated Statements of Comprehensive Income (Loss) |
6 | |||
Segment Information |
||||
For the three months ended September 30, 2012 and 2011 |
7-8 | |||
For the nine months ended September 30, 2012 and 2011 |
9-10 | |||
Non-life segment |
11-12 | |||
North America sub-segment |
13-14 | |||
Global (Non-U.S.) P&C sub-segment |
15-16 | |||
Global (Non-U.S.) Specialty sub-segment |
17-18 | |||
Catastrophe sub-segment |
19-20 | |||
Life segment |
21-22 | |||
Corporate and Other |
23-24 | |||
Distribution of Premiums |
||||
Distribution of Premiums by line of business, geography and production source |
25-26 | |||
Distribution of Premiums by reinsurance type |
27-28 | |||
Investments |
||||
Investment Portfolio |
29 | |||
Distribution of Corporate Bonds |
30 | |||
Distribution of Equities |
31 | |||
Distribution of Mortgage/Asset-Backed Securities |
32 | |||
Other Invested Assets including Private Markets and Derivative Exposures |
33 | |||
Funds Held - Directly Managed Portfolio |
34 | |||
Distribution of Corporate Bonds - Funds Held - Directly Managed Portfolio |
35 | |||
Composition of Net Investment Income and Net Realized and Unrealized Investment Gains (Losses) |
36-37 | |||
Composition of Net Investment Income and Net Realized and Unrealized Investment Gains (Losses) on Funds Held - Directly Managed Portfolio |
38-39 | |||
Loss Reserves |
||||
Analysis of Unpaid Losses and Loss Expenses |
40-41 | |||
Analysis of Policy Benefits for Life and Annuity Contracts |
42-43 | |||
Reserve Development |
44-45 | |||
Natural Catastrophe Probable Maximum Losses (PMLs) |
46 | |||
Reconciliation of GAAP and non-GAAP measures |
47-49 | |||
Diluted Book Value per Common Share - Treasury Stock Method |
50 | |||
Diluted Book Value per Common Share - Rollforward |
51-53 |
PartnerRe Ltd. |
Regulation G
In addition to the GAAP financial measures set forth in this Financial Supplement, the Company has also included certain non-GAAP financial measures within the meaning of Regulation G. Management believes that these non-GAAP financial measures are important to investors, analysts, rating agencies and others who use the Companys financial information and will help provide a consistent basis for comparison between quarters and for comparison with other companies within the industry. However, investors should consider these non-GAAP measures in addition to, and not as a substitute for, measures of financial performance prepared in accordance with GAAP.
The reconciliation of non-GAAP financial measures to the most comparable GAAP financial measures in accordance with Regulation G is included within the relevant tables.
Operating Earnings (Loss) available to Common Shareholders (Operating Earnings (Loss)), Diluted Operating Earnings (Loss) per Common Share and Annualized Operating Return on Beginning Diluted Book Value per Common Share and Common Share Equivalents Outstanding (Annualized Operating ROE): The Company uses Operating Earnings (Loss), Diluted Operating Earnings (Loss) per Common Share and Annualized Operating ROE to measure performance, as these measures focus on the underlying fundamentals of the Companys operations. Operating Earnings (Loss) exclude the impact of net realized and unrealized gains and losses on investments, net of tax, net foreign exchange gains and losses, net of tax, and the interest in earnings (losses) of equity investments, net of tax, where the investees operations are not insurance or reinsurance related and where the Company does not control the investee companies activities, and are calculated after preferred dividends. The Company calculates Diluted Operating Earnings (Loss) per Common Share using Operating Earnings (Loss) for the period divided by the weighted average number of common shares and common share equivalents outstanding. The Company calculates Annualized Operating ROE using annualized Diluted Operating Earnings (Loss) per Common Share for the period divided by the Diluted Book Value per common share and common share equivalents outstanding as of the beginning of the year. Operating Earnings (Loss) and Diluted Operating Earnings (Loss) per Common Share should not be viewed as a substitute for Net Income (Loss) or Diluted Net Income (Loss) per Common Share prepared in accordance with GAAP. Annualized Operating ROE supplements GAAP information.
Book Value excluding Net Unrealized Gains and Losses on Fixed Income Securities and Funds Held - Directly Managed, Net of Tax (Book Value excluding NURGL) and Diluted Book Value per Common Share and Common Share Equivalents Outstanding (Diluted Book Value per Common Share) excluding Net Unrealized Gains and Losses on Fixed Income Securities and Funds Held - Directly Managed, Net of Tax (Diluted Book Value excluding NURGL): The Company calculates Book Value excluding NURGL using common shareholders equity less net unrealized gains and losses on fixed income securities and funds held - directly managed, net of tax. Book Value excluding NURGL focuses on the underlying fundamentals of the Companys financial position without the impact of interest rates and credit spreads on the unrealized gains and losses on fixed income securities and funds held - directly managed, net of tax. The Company calculates Diluted Book Value excluding NURGL using Book Value excluding NURGL divided by the weighted average number of common shares and common share equivalents outstanding.
Total Capital: The Company calculates Total Capital as the sum of total shareholders equity, long-term debt, senior notes and capital efficient notes. The Company uses Total Capital as a measure to manage the capital structure of the Company.
Basis of Presentation
Effective January 1, 2011, the Company redefined its Operating Earnings (Loss), Diluted Operating Earnings (Loss) per Common Share and Annualized Operating ROE calculations. Following the redefinition, Operating Earnings (Loss) exclude the impact of net foreign exchange gains and losses, net of tax, in addition to net realized and unrealized gains and losses on investments, net of tax, and certain of the interest in earnings (losses) of equity investments, net of tax, and are calculated after preferred dividends. In addition, following the redefinition, Annualized Operating ROE is calculated on a diluted per share basis. All periods presented have been recast to reflect the Companys redefined non-GAAP measures. For a reconciliation of the previously published non-GAAP measures for the year ended December 31, 2010 to the redefined non-GAAP measures, see the Companys financial supplement as of December 31, 2011.
The Companys Non-life sub-segment information has been recast for all periods presented to reflect the redefined financial reporting segments, as announced by the Company on January 11, 2011. The new presentation continues to include three segments: Non-life, Life, and Corporate and Other. The Non-life segment now has four sub-segments: North America, Global (Non-U.S.) P&C, Global (Non-U.S.) Specialty, and Catastrophe. The Life segment remains unchanged. Paris Re is no longer presented as a separate Non-life sub-segment and its historical results have been recast into the Companys other Non-life sub-segments. In addition, management responsibilities for certain lines of business and certain other treaties have been redefined, and accordingly, the historical Non-life sub-segment results have been recast to reflect these changes.
PartnerRe Ltd.
Consolidated Income Statements
(Expressed in thousands of U.S. dollars or shares, except per share data)
(Unaudited)
For the three months ended | ||||||||||||||||||||
September 30, 2012 |
June 30, 2012 |
March 31, 2012 |
December 31, 2011 |
September 30, 2011 |
||||||||||||||||
|
|
|||||||||||||||||||
Revenues |
||||||||||||||||||||
Gross premiums written |
$ | 1,056,076 | $ | 1,163,243 | $ | 1,567,483 | $ | 897,962 | $ | 1,095,326 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net premiums written |
$ | 1,043,240 | $ | 1,136,046 | $ | 1,473,286 | $ | 879,886 | $ | 1,079,557 | ||||||||||
Decrease (increase) in unearned premiums |
193,851 | (45,168 | ) | (483,456 | ) | 301,515 | 214,762 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net premiums earned |
1,237,091 | 1,090,878 | 989,830 | 1,181,401 | 1,294,319 | |||||||||||||||
Net investment income |
135,266 | 153,506 | 146,896 | 155,540 | 163,647 | |||||||||||||||
Net realized and unrealized investment gains |
257,429 | 38,132 | 192,735 | 74,553 | 26,139 | |||||||||||||||
Other income |
2,744 | 2,654 | 2,746 | 3,072 | 1,434 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total revenues |
1,632,530 | 1,285,170 | 1,332,207 | 1,414,566 | 1,485,539 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Expenses |
||||||||||||||||||||
Losses and loss expenses and life policy benefits |
721,137 | 706,137 | 576,486 | 1,069,204 | 881,626 | |||||||||||||||
Acquisition costs |
247,058 | 232,723 | 211,608 | 238,772 | 262,489 | |||||||||||||||
Other operating expenses |
94,697 | 106,184 | 98,174 | 113,033 | 103,822 | |||||||||||||||
Interest expense |
12,224 | 12,223 | 12,220 | 12,219 | 12,216 | |||||||||||||||
Amortization of intangible assets |
8,893 | 8,893 | 8,893 | 8,893 | 9,520 | |||||||||||||||
Net foreign exchange losses (gains) |
2,015 | (7,770 | ) | 2,589 | (14,655 | ) | (10,587 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total expenses |
1,086,024 | 1,058,390 | 909,970 | 1,427,466 | 1,259,086 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Income (loss) before taxes and interest in earnings (losses) of equity investments |
546,506 | 226,780 | 422,237 | (12,900 | ) | 226,453 | ||||||||||||||
Income tax expense |
64,149 | 50,136 | 67,174 | 3,341 | 41,803 | |||||||||||||||
Interest in earnings (losses) of equity investments |
4,349 | (498 | ) | 5,078 | (1,402 | ) | (4,527 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net income (loss) |
$ | 486,706 | $ | 176,146 | $ | 360,141 | $ | (17,643 | ) | $ | 180,123 | |||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Preferred dividends |
$ | 15,405 | $ | 15,405 | $ | 15,405 | $ | 15,405 | $ | 14,352 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Operating earnings (loss) available to common shareholders |
$ | 244,406 | $ | 142,018 | $ | 181,695 | $ | (137,688 | ) | $ | 164,498 | |||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Comprehensive income (loss), net of tax |
$ | 518,871 | $ | 158,044 | $ | 376,237 | $ | (22,420 | ) | $ | 126,271 | |||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Per Share Data: |
||||||||||||||||||||
Earnings (loss) per common share: |
||||||||||||||||||||
Basic operating earnings (loss) |
$ | 3.95 | $ | 2.22 | $ | 2.78 | $ | (2.06 | ) | $ | 2.43 | |||||||||
Net realized and unrealized investment gains, net of tax |
3.59 | 0.29 | 2.43 | 0.85 | 0.09 | |||||||||||||||
Net foreign exchange gains (losses), net of tax |
0.02 | 0.02 | (0.02 | ) | 0.75 | | ||||||||||||||
Interest in earnings (losses) of equity investments, net of tax |
0.06 | (0.01 | ) | 0.08 | (0.03 | ) | (0.07 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Basic net income (loss) |
$ | 7.62 | $ | 2.52 | $ | 5.27 | $ | (0.49 | ) | $ | 2.45 | |||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Weighted average number of common shares outstanding |
61,837.3 | 63,816.0 | 65,404.2 | 66,877.1 | 67,743.3 | |||||||||||||||
Diluted operating earnings (loss) |
$ | 3.90 | $ | 2.20 | $ | 2.76 | $ | (2.06 | ) | $ | 2.41 | |||||||||
Net realized and unrealized investment gains, net of tax |
3.55 | 0.29 | 2.42 | 0.85 | 0.09 | |||||||||||||||
Net foreign exchange gains (losses), net of tax |
0.02 | 0.02 | (0.02 | ) | 0.75 | | ||||||||||||||
Interest in earnings (losses) of equity investments, net of tax |
0.06 | (0.01 | ) | 0.08 | (0.03 | ) | (0.07 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Diluted net income (loss) |
$ | 7.53 | $ | 2.50 | $ | 5.24 | $ | (0.49 | ) | $ | 2.43 | |||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Weighted average number of common shares and common share equivalents outstanding |
62,606.8 | 64,423.0 | 65,842.8 | 66,877.1 | 68,182.0 | |||||||||||||||
Dividends declared per common share |
$ | 0.62 | $ | 0.62 | $ | 0.62 | $ | 0.60 | $ | 0.60 |
1
PartnerRe Ltd.
Consolidated Income Statements
(Expressed in thousands of U.S. dollars or shares, except per share data)
(Unaudited)
For the nine months ended | For the year ended | |||||||||||||||||
September 30, 2012 |
September 30, 2011 |
December 31, 2011 |
December 31, 2010 |
|||||||||||||||
|
|
|
|
|||||||||||||||
Revenues |
||||||||||||||||||
Gross premiums written |
$ | 3,786,802 | $ | 3,735,091 | $ | 4,633,054 | $ | 4,885,266 | ||||||||||
|
|
|
|
|
|
|
|
|||||||||||
Net premiums written |
$ | 3,652,571 | $ | 3,606,444 | $ | 4,486,329 | $ | 4,705,116 | ||||||||||
(Increase) decrease in unearned premiums |
(334,772 | ) | (140,091 | ) | 161,425 | 71,355 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||||
Net premiums earned |
3,317,799 | 3,466,353 | 4,647,754 | 4,776,471 | ||||||||||||||
Net investment income |
435,669 | 473,608 | 629,148 | 672,782 | ||||||||||||||
Net realized and unrealized investment gains (losses) |
488,296 | (7,860 | ) | 66,692 | 401,482 | |||||||||||||
Other income |
8,143 | 4,843 | 7,915 | 10,470 | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||
Total revenues |
4,249,907 | 3,936,944 | 5,351,509 | 5,861,205 | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||
Expenses |
||||||||||||||||||
Losses and loss expenses and life policy benefits |
2,003,759 | 3,303,366 | 4,372,570 | 3,283,618 | ||||||||||||||
Acquisition costs |
691,388 | 699,589 | 938,361 | 972,537 | ||||||||||||||
Other operating expenses |
299,055 | 321,813 | 434,846 | 539,751 | ||||||||||||||
Interest expense |
36,668 | 36,730 | 48,949 | 44,413 | ||||||||||||||
Amortization of intangible assets |
26,679 | 27,512 | 36,405 | 31,461 | ||||||||||||||
Net foreign exchange (gains) losses |
(3,165 | ) | (20,020 | ) | (34,675 | ) | 20,686 | |||||||||||
|
|
|
|
|
|
|
|
|||||||||||
Total expenses |
3,054,384 | 4,368,990 | 5,796,456 | 4,892,466 | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||
Income (loss) before taxes and interest in earnings (losses) of equity investments |
1,195,523 | (432,046 | ) | (444,947 | ) | 968,739 | ||||||||||||
Income tax expense |
181,458 | 65,632 | 68,972 | 128,784 | ||||||||||||||
Interest in earnings (losses) of equity investments |
8,929 | (4,970 | ) | (6,372 | ) | 12,597 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||||
Net income (loss) |
$ | 1,022,994 | $ | (502,648 | ) | $ | (520,291 | ) | $ | 852,552 | ||||||||
|
|
|
|
|
|
|
|
|||||||||||
Preferred dividends |
$ | 46,216 | $ | 31,614 | $ | 47,020 | $ | 34,525 | ||||||||||
|
|
|
|
|
|
|
|
|||||||||||
Operating earnings (loss) available to common shareholders |
$ | 568,119 | $ | (503,921 | ) | $ | (641,609 | ) | $ | 491,807 | ||||||||
|
|
|
|
|
|
|
|
|||||||||||
Comprehensive income (loss), net of tax |
$ | 1,053,153 | $ | (514,571 | ) | $ | (536,991 | ) | $ | 771,681 | ||||||||
|
|
|
|
|
|
|
|
|||||||||||
Per Share Data: |
||||||||||||||||||
Earnings (loss) per common share: |
||||||||||||||||||
Basic operating earnings (loss) |
$ | 8.92 | $ | (7.43 | ) | $ | (9.50 | ) | $ | 6.40 | ||||||||
Net realized and unrealized investment gains (losses), net of tax |
6.27 | (0.61 | ) | 0.23 | 3.92 | |||||||||||||
Net foreign exchange gains, net of tax |
0.02 | 0.24 | 0.98 | 0.17 | ||||||||||||||
Interest in earnings (losses) of equity investments, net of tax |
0.13 | (0.08 | ) | (0.11 | ) | 0.16 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||||
Basic net income (loss) |
$ | 15.34 | $ | (7.88 | ) | $ | (8.40 | ) | $ | 10.65 | ||||||||
|
|
|
|
|
|
|
|
|||||||||||
Weighted average number of common shares outstanding |
63,679.1 | 67,788.4 | 67,558.7 | 76,839.5 | ||||||||||||||
Diluted operating earnings (loss) |
$ | 8.84 | $ | (7.43 | ) | $ | (9.50 | ) | $ | 6.29 | ||||||||
Net realized and unrealized investment gains (losses), net of tax |
6.21 | (0.61 | ) | 0.23 | 3.86 | |||||||||||||
Net foreign exchange gains, net of tax |
0.01 | 0.24 | 0.98 | 0.16 | ||||||||||||||
Interest in earnings (losses) of equity investments, net of tax |
0.13 | (0.08 | ) | (0.11 | ) | 0.15 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||||
Diluted net income (loss) |
$ | 15.19 | $ | (7.88 | ) | $ | (8.40 | ) | $ | 10.46 | ||||||||
|
|
|
|
|
|
|
|
|||||||||||
Weighted average number of common shares and common share equivalents outstanding |
64,284.1 | 67,788.4 | 67,558.7 | 78,234.3 | ||||||||||||||
Dividends declared per common share |
$ | 1.86 | $ | 1.75 | $ | 2.35 | $ | 2.05 |
2
PartnerRe Ltd.
Condensed Consolidated Balance Sheets
(Expressed in thousands of U.S. dollars or shares, except per share data)
(Unaudited)
September 30, 2012 |
June 30, 2012 |
March 31, 2012 |
December 31, 2011 |
September 30, 2011 |
December 31, 2010 |
|||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||
Assets |
||||||||||||||||||||||||||||||||||||||||||||||||||
Total investments |
$ | 15,912,719 | $ | 15,031,945 | $ | 15,754,854 | $ | 15,287,245 | $ | 15,789,856 | $ | 14,297,867 | ||||||||||||||||||||||||||||||||||||||
Funds held - directly managed |
1,188,186 | 1,233,008 | 1,264,383 | 1,268,010 | 1,322,761 | 1,772,118 | ||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents |
1,336,362 | 1,512,418 | 1,210,229 | 1,342,257 | 1,073,432 | 2,111,084 | ||||||||||||||||||||||||||||||||||||||||||||
Accrued investment income |
175,066 | 160,392 | 181,898 | 189,074 | 198,503 | 201,928 | ||||||||||||||||||||||||||||||||||||||||||||
Reinsurance balances receivable |
2,329,907 | 2,358,432 | 2,571,038 | 2,059,976 | 2,313,538 | 2,076,884 | ||||||||||||||||||||||||||||||||||||||||||||
Reinsurance recoverable on paid and unpaid losses |
369,960 | 434,083 | 432,059 | 397,788 | 447,015 | 382,878 | ||||||||||||||||||||||||||||||||||||||||||||
Funds held by reinsured companies |
805,178 | 783,311 | 799,988 | 796,290 | 814,950 | 937,032 | ||||||||||||||||||||||||||||||||||||||||||||
Deferred acquisition costs |
602,660 | 620,277 | 636,537 | 547,202 | 602,275 | 595,557 | ||||||||||||||||||||||||||||||||||||||||||||
Goodwill |
455,533 | 455,533 | 455,533 | 455,533 | 455,533 | 455,533 | ||||||||||||||||||||||||||||||||||||||||||||
Intangible assets |
107,188 | 116,081 | 124,974 | 133,867 | 142,760 | 178,715 | ||||||||||||||||||||||||||||||||||||||||||||
Other assets |
357,371 | 366,483 | 364,163 | 378,131 | 458,490 | 354,775 | ||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||
Total assets |
$ | 23,640,130 | $ | 23,071,963 | $ | 23,795,656 | $ | 22,855,373 | $ | 23,619,113 | $ | 23,364,371 | ||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||
Liabilities |
||||||||||||||||||||||||||||||||||||||||||||||||||
Unpaid losses and loss expenses |
$ | 10,761,302 | $ | 10,661,012 | $ | 11,143,354 | $ | 11,273,091 | $ | 11,352,599 | $ | 10,666,604 | ||||||||||||||||||||||||||||||||||||||
Policy benefits for life and annuity contracts |
1,703,147 | 1,635,547 | 1,707,982 | 1,645,662 | 1,678,201 | 1,750,410 | ||||||||||||||||||||||||||||||||||||||||||||
Unearned premiums |
1,810,881 | 2,008,384 | 2,017,177 | 1,448,841 | 1,787,351 | 1,599,139 | ||||||||||||||||||||||||||||||||||||||||||||
Other reinsurance balances payable |
504,820 | 496,020 | 522,701 | 443,873 | 493,926 | 491,194 | ||||||||||||||||||||||||||||||||||||||||||||
Debt obligations |
820,989 | 820,989 | 820,989 | 820,989 | 820,989 | 820,989 | ||||||||||||||||||||||||||||||||||||||||||||
Other liabilities |
959,989 | 752,418 | 796,582 | 755,375 | 778,364 | 829,116 | ||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||
Total liabilities |
16,561,128 | 16,374,370 | 17,008,785 | 16,387,831 | 16,911,430 | 16,157,452 | ||||||||||||||||||||||||||||||||||||||||||||
Total shareholders equity |
7,079,002 | 6,697,593 | 6,786,871 | 6,467,542 | 6,707,683 | 7,206,919 | ||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||
Total liabilities and shareholders equity |
$ | 23,640,130 | $ | 23,071,963 | $ | 23,795,656 | $ | 22,855,373 | $ | 23,619,113 | $ | 23,364,371 | ||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||
Shareholders Equity Per Common Share (excluding preferred shares) |
$ | 100.79 | $ | 92.78 | $ | 90.23 | $ | 85.33 | $ | 85.82 | $ | 95.55 | ||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||
Diluted Book Value Per Common Share and Common Share Equivalents Outstanding (assuming exercise of all share-based awards) |
$ | 99.54 | $ | 91.88 | $ | 89.63 | $ | 84.82 | $ | 85.26 | $ | 93.77 | ||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||
Number of Common Shares and Common Share Equivalents Outstanding |
62,136.1 | 63,164.5 | 65,751.6 | 65,715.7 | 68,188.1 | 71,312.3 | ||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||
Capital Structure: |
||||||||||||||||||||||||||||||||||||||||||||||||||
Senior notes (1) |
$ | 750,000 | 10 | % | $ | 750,000 | 10 | % | $ | 750,000 | 10 | % | $ | 750,000 | 10 | % | $ | 750,000 | 10 | % | $ | 750,000 | 9 | % | ||||||||||||||||||||||||||
Capital efficient notes (2) |
63,384 | 1 | 63,384 | 1 | 63,384 | 1 | 63,384 | 1 | 63,384 | 1 | 63,384 | 1 | ||||||||||||||||||||||||||||||||||||||
Preferred shares, aggregate liquidation value |
893,750 | 11 | 893,750 | 12 | 893,750 | 12 | 893,750 | 12 | 893,750 | 12 | 520,000 | 7 | ||||||||||||||||||||||||||||||||||||||
Common shareholders equity |
6,185,252 | 78 | 5,803,843 | 77 | 5,893,121 | 77 | 5,573,792 | 77 | 5,813,933 | 77 | 6,686,919 | 83 | ||||||||||||||||||||||||||||||||||||||
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Total Capital |
$ | 7,892,386 | 100 | % | $ | 7,510,977 | 100 | % | $ | 7,600,255 | 100 | % | $ | 7,280,926 | 100 | % | $ | 7,521,067 | 100 | % | $ | 8,020,303 | 100 | % | ||||||||||||||||||||||||||
|
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|
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|
|
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|
|
|
(1) | PartnerRe Finance A LLC and PartnerRe Finance B LLC, the issuers of the senior notes, do not meet U.S. GAAP consolidation requirements. Accordingly, the Company shows the related intercompany debt of $250.0 million and $500.0 million, respectively, on its Condensed Consolidated Balance Sheets. |
(2) | PartnerRe Finance II, the issuer of the capital efficient notes, does not meet U.S. GAAP consolidation requirements. Accordingly, the Company shows the related intercompany debt of $71.0 million on its Condensed Consolidated Balance Sheets. |
3
PartnerRe Ltd.
Condensed Consolidated Statements of Cash Flows
(Expressed in millions of U.S. dollars)
(Unaudited)
For the three months ended | ||||||||||||||||||||
September 30, 2012 |
June 30, 2012 |
March 31, 2012 |
December 31, 2011 |
September 30, 2011 |
||||||||||||||||
|
|
|||||||||||||||||||
Net cash provided by (used in) operating activities: |
||||||||||||||||||||
Underwriting operations (1) |
$ | 152 | $ | (75 | ) | $ | (68 | ) | $ | (140 | ) | $ | (314 | ) | ||||||
Investment income |
160 | 204 | 188 | 189 | 167 | |||||||||||||||
Taxes and foreign exchange |
(25 | ) | (26 | ) | (41 | ) | (59 | ) | (12 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net cash provided by (used in) operating activities |
$ | 287 | $ | 103 | $ | 79 | $ | (10 | ) | $ | (159 | ) | ||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net cash provided by (used in) operating activities |
$ | 287 | $ | 103 | $ | 79 | $ | (10 | ) | $ | (159 | ) | ||||||||
Net cash (used in) provided by investing activities |
(335 | ) | 492 | (168 | ) | 519 | (292 | ) | ||||||||||||
Net cash used in financing activities |
(141 | ) | (266 | ) | (50 | ) | (223 | ) | (55 | ) | ||||||||||
Effect of foreign exchange rate changes on cash |
13 | (27 | ) | 7 | (17 | ) | (28 | ) | ||||||||||||
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|
|
|
|
|
|
|
|
|
|||||||||||
(Decrease) increase in cash and cash equivalents |
(176 | ) | 302 | (132 | ) | 269 | (534 | ) | ||||||||||||
Cash and cash equivalents - beginning of period |
1,512 | 1,210 | 1,342 | 1,073 | 1,607 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Cash and cash equivalents - end of period |
$ | 1,336 | $ | 1,512 | $ | 1,210 | $ | 1,342 | $ | 1,073 | ||||||||||
|
|
|
|
|
|
|
|
|
|
(1) | For the three months ended September 30, 2011, net cash provided by underwriting operations includes approximately $58 million of cash related to the release of assets from the Funds Held - Directly Managed Portfolio. |
4
PartnerRe Ltd.
Condensed Consolidated Statements of Cash Flows
(Expressed in millions of U.S. dollars)
(Unaudited)
For the nine months ended | For the year ended | |||||||||||||||||
September 30, 2012 |
September 30, 2011 |
December 31, 2011 |
December 31, 2010 |
|||||||||||||||
|
|
|
|
|||||||||||||||
Net cash provided by operating activities: |
||||||||||||||||||
Underwriting operations (1) |
$ | 10 | $ | 111 | $ | (29 | ) | $ | 650 | |||||||||
Investment income |
551 | 542 | 731 | 762 | ||||||||||||||
Taxes and foreign exchange |
(92 | ) | (69 | ) | (128 | ) | (185 | ) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||||
Net cash provided by operating activities |
$ | 469 | $ | 584 | $ | 574 | $ | 1,227 | ||||||||||
|
|
|
|
|
|
|
|
|||||||||||
Net cash provided by operating activities |
$ | 469 | $ | 584 | $ | 574 | $ | 1,227 | ||||||||||
Net cash (used in) provided by investing activities |
(11 | ) | (1,599 | ) | (1,080 | ) | 1,102 | |||||||||||
Net cash used in financing activities |
(458 | ) | (19 | ) | (242 | ) | (922 | ) | ||||||||||
Effect of foreign exchange rate changes on cash |
(6 | ) | (4 | ) | (21 | ) | (34 | ) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||||
(Decrease) increase in cash and cash equivalents |
(6 | ) | (1,038 | ) | (769 | ) | 1,373 | |||||||||||
Cash and cash equivalents - beginning of period |
1,342 | 2,111 | 2,111 | 738 | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||
Cash and cash equivalents - end of period |
$ | 1,336 | $ | 1,073 | $ | 1,342 | $ | 2,111 | ||||||||||
|
|
|
|
|
|
|
|
(1) | For the nine months ended September 30, 2011 and for the year ended December 31, 2011, net cash provided by underwriting operations includes approximately $358 million of cash related to the release of assets from the Funds Held - Directly Managed Portfolio. |
5
PartnerRe Ltd.
Consolidated Statements of Comprehensive Income (Loss)
(Expressed in thousands of U.S. dollars)
(Unaudited)
For the three months ended | ||||||||||||||||||||
September 30, 2012 |
June 30, 2012 |
March 31, 2012 |
December 31, 2011 |
September 30, 2011 |
||||||||||||||||
|
|
|||||||||||||||||||
Net income (loss) |
$ | 486,706 | $ | 176,146 | $ | 360,141 | $ | (17,643 | ) | $ | 180,123 | |||||||||
Change in currency translation adjustment |
32,992 | (19,157 | ) | 17,207 | (960 | ) | (54,958 | ) | ||||||||||||
Change in net unrealized gains or losses on investments, net of tax |
(237 | ) | (239 | ) | (242 | ) | (204 | ) | (244 | ) | ||||||||||
Change in unfunded pension obligation, net of tax |
(590 | ) | 1,294 | (869 | ) | (3,613 | ) | 1,350 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Comprehensive income (loss) |
$ | 518,871 | $ | 158,044 | $ | 376,237 | $ | (22,420 | ) | $ | 126,271 | |||||||||
|
|
|
|
|
|
|
|
|
|
For the nine months ended | For the year ended | |||||||||||||||||
September 30, 2012 |
September 30, 2011 |
December 31, 2011 |
December 31, 2010 |
|||||||||||||||
|
|
|
|
|||||||||||||||
Net income (loss) |
$ | 1,022,994 | $ | (502,648 | ) | $ | (520,291 | ) | $ | 852,552 | ||||||||
Change in currency translation adjustment |
31,042 | (10,874 | ) | (11,834 | ) | (66,742 | ) | |||||||||||
Change in net unrealized gains or losses on investments, net of tax |
(718 | ) | (745 | ) | (949 | ) | (4,908 | ) | ||||||||||
Change in unfunded pension obligation, net of tax |
(165 | ) | (304 | ) | (3,917 | ) | (9,221 | ) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||||
Comprehensive income (loss) |
$ | 1,053,153 | $ | (514,571 | ) | $ | (536,991 | ) | $ | 771,681 | ||||||||
|
|
|
|
|
|
|
|
6
PartnerRe Ltd.
Segment Information
(Expressed in millions of U.S. dollars)
(Unaudited)
For the three months ended September 30, 2012 | ||||||||||||||||||||||||||||||||
North America |
Global (Non-U.S.) P&C |
Global (Non-U.S.) Specialty |
Catastrophe | Total Non- life segment |
Life segment | Corporate and Other |
Total | |||||||||||||||||||||||||
Gross premiums written |
$ | 311 | $ | 123 | $ | 360 | $ | 75 | $ | 869 | $ | 187 | $ | | $ | 1,056 | ||||||||||||||||
Net premiums written |
$ | 311 | $ | 122 | $ | 354 | $ | 69 | $ | 856 | $ | 187 | $ | | $ | 1,043 | ||||||||||||||||
Decrease in unearned premiums |
24 | 50 | 9 | 99 | 182 | 8 | 4 | 194 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Net premiums earned |
$ | 335 | $ | 172 | $ | 363 | $ | 168 | $ | 1,038 | $ | 195 | $ | 4 | $ | 1,237 | ||||||||||||||||
Losses and loss expenses and life policy benefits |
(251 | ) | (110 | ) | (161 | ) | (39 | ) | (561 | ) | (157 | ) | (3 | ) | (721 | ) | ||||||||||||||||
Acquisition costs |
(83 | ) | (42 | ) | (79 | ) | (15 | ) | (219 | ) | (27 | ) | (1 | ) | (247 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Technical result |
$ | 1 | $ | 20 | $ | 123 | $ | 114 | $ | 258 | $ | 11 | $ | | $ | 269 | ||||||||||||||||
Other income |
1 | 1 | 1 | 3 | ||||||||||||||||||||||||||||
Other operating expenses |
(58 | ) | (12 | ) | (25 | ) | (95 | ) | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Underwriting result |
$ | 201 | $ | | n/a | $ | 177 | |||||||||||||||||||||||||
Net investment income |
15 | 120 | 135 | |||||||||||||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||||||||||
Allocated underwriting result (1) |
$ | 15 | n/a | n/a | ||||||||||||||||||||||||||||
Net realized and unrealized investment gains |
257 | 257 | ||||||||||||||||||||||||||||||
Interest expense |
(12 | ) | (12 | ) | ||||||||||||||||||||||||||||
Amortization of intangible assets |
(9 | ) | (9 | ) | ||||||||||||||||||||||||||||
Net foreign exchange losses |
(2 | ) | (2 | ) | ||||||||||||||||||||||||||||
Income tax expense |
(64 | ) | (64 | ) | ||||||||||||||||||||||||||||
Interest in earnings of equity investments |
5 | 5 | ||||||||||||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||||||||||
Net income |
n/a | $ | 487 | |||||||||||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||||||||||
Loss ratio (2) |
74.9 | % | 63.9 | % | 44.4 | % | 23.3 | % | 54.1 | % | ||||||||||||||||||||||
Acquisition ratio (3) |
24.8 | 24.9 | 21.7 | 8.8 | 21.1 | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Technical ratio (4) |
99.7 | % | 88.8 | % | 66.1 | % | 32.1 | % | 75.2 | % | ||||||||||||||||||||||
Other operating expense ratio (5) |
5.5 | |||||||||||||||||||||||||||||||
|
|
|||||||||||||||||||||||||||||||
Combined ratio (6) |
80.7 | % | ||||||||||||||||||||||||||||||
|
|
(1) | Allocated underwriting result is defined as net premiums earned, other income or loss and allocated net investment income less life policy benefits, acquisition costs and other operating expenses. |
(2) | Loss ratio is obtained by dividing losses and loss expenses by net premiums earned. |
(3) | Acquisition ratio is obtained by dividing acquisition costs by net premiums earned. |
(4) | Technical ratio is defined as the sum of the loss ratio and the acquisition ratio. |
(5) | Other operating expense ratio is obtained by dividing other operating expenses by net premiums earned. |
(6) | Combined ratio is defined as the sum of the technical ratio and the other operating expense ratio. |
7
PartnerRe Ltd.
Segment Information
(Expressed in millions of U.S. dollars)
(Unaudited)
For the three months ended September 30, 2011 | ||||||||||||||||||||||||||||||||
North America |
Global (Non-U.S.) P&C |
Global (Non-U.S.) Specialty |
Catastrophe | Total
Non- life segment |
Life segment | Corporate and Other |
Total | |||||||||||||||||||||||||
Gross premiums written |
$ | 288 | $ | 144 | $ | 368 | $ | 95 | $ | 895 | $ | 194 | $ | 6 | $ | 1,095 | ||||||||||||||||
Net premiums written |
$ | 287 | $ | 144 | $ | 360 | $ | 89 | $ | 880 | $ | 194 | $ | 6 | $ | 1,080 | ||||||||||||||||
Decrease in unearned premiums |
42 | 49 | 2 | 110 | 203 | 9 | 2 | 214 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Net premiums earned |
$ | 329 | $ | 193 | $ | 362 | $ | 199 | $ | 1,083 | $ | 203 | $ | 8 | $ | 1,294 | ||||||||||||||||
Losses and loss expenses and life policy benefits |
(192 | ) | (102 | ) | (247 | ) | (169 | ) | (710 | ) | (168 | ) | (4 | ) | (882 | ) | ||||||||||||||||
Acquisition costs |
(80 | ) | (52 | ) | (82 | ) | (15 | ) | (229 | ) | (33 | ) | | (262 | ) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Technical result |
$ | 57 | $ | 39 | $ | 33 | $ | 15 | $ | 144 | $ | 2 | $ | 4 | $ | 150 | ||||||||||||||||
Other income |
1 | | | 1 | ||||||||||||||||||||||||||||
Other operating expenses |
(69 | ) | (12 | ) | (23 | ) | (104 | ) | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Underwriting result |
$ | 76 | $ | (10 | ) | n/a | $ | 47 | ||||||||||||||||||||||||
Net investment income |
19 | 145 | 164 | |||||||||||||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||||||||||
Allocated underwriting result (1) |
$ | 9 | n/a | n/a | ||||||||||||||||||||||||||||
Net realized and unrealized investment gains |
26 | 26 | ||||||||||||||||||||||||||||||
Interest expense |
(12 | ) | (12 | ) | ||||||||||||||||||||||||||||
Amortization of intangible assets |
(9 | ) | (9 | ) | ||||||||||||||||||||||||||||
Net foreign exchange gains |
11 | 11 | ||||||||||||||||||||||||||||||
Income tax expense |
(42 | ) | (42 | ) | ||||||||||||||||||||||||||||
Interest in losses of equity investments |
(5 | ) | (5 | ) | ||||||||||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||||||||||
Net income |
n/a | $ | 180 | |||||||||||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||||||||||
Loss ratio (2) |
58.4 | % | 52.9 | % | 68.3 | % | 85.0 | % | 65.6 | % | ||||||||||||||||||||||
Acquisition ratio (3) |
24.3 | 26.9 | 22.7 | 7.4 | 21.1 | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Technical ratio (4) |
82.7 | % | 79.8 | % | 91.0 | % | 92.4 | % | 86.7 | % | ||||||||||||||||||||||
Other operating expense ratio (5) |
6.4 | |||||||||||||||||||||||||||||||
|
|
|||||||||||||||||||||||||||||||
Combined ratio (6) |
93.1 | % | ||||||||||||||||||||||||||||||
|
|
8
PartnerRe Ltd.
Segment Information
(Expressed in millions of U.S. dollars)
(Unaudited)
For the nine months ended September 30, 2012 | ||||||||||||||||||||||||||||||||
North America |
Global (Non-U.S.) P&C |
Global (Non-U.S.) Specialty |
Catastrophe | Total
Non- life segment |
Life segment |
Corporate and Other |
Total | |||||||||||||||||||||||||
Gross premiums written |
$ | 924 | $ | 600 | $ | 1,178 | $ | 475 | $ | 3,177 | $ | 604 | $ | 6 | $ | 3,787 | ||||||||||||||||
Net premiums written |
$ | 922 | $ | 596 | $ | 1,098 | $ | 429 | $ | 3,045 | $ | 601 | $ | 6 | $ | 3,652 | ||||||||||||||||
Increase in unearned premiums |
(59 | ) | (100 | ) | (64 | ) | (98 | ) | (321 | ) | (12 | ) | (1 | ) | (334 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Net premiums earned |
$ | 863 | $ | 496 | $ | 1,034 | $ | 331 | $ | 2,724 | $ | 589 | $ | 5 | $ | 3,318 | ||||||||||||||||
Losses and loss expenses and life policy benefits |
(568 | ) | (327 | ) | (569 | ) | (58 | ) | (1,522 | ) | (479 | ) | (3 | ) | (2,004 | ) | ||||||||||||||||
Acquisition costs |
(218 | ) | (120 | ) | (241 | ) | (30 | ) | (609 | ) | (82 | ) | | (691 | ) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Technical result |
$ | 77 | $ | 49 | $ | 224 | $ | 243 | $ | 593 | $ | 28 | $ | 2 | $ | 623 | ||||||||||||||||
Other income |
2 | 3 | 3 | 8 | ||||||||||||||||||||||||||||
Other operating expenses |
(187 | ) | (38 | ) | (74 | ) | (299 | ) | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Underwriting result |
$ | 408 | $ | (7 | ) | n/a | $ | 332 | ||||||||||||||||||||||||
Net investment income |
49 | 387 | 436 | |||||||||||||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||||||||||
Allocated underwriting result (1) |
$ | 42 | n/a | n/a | ||||||||||||||||||||||||||||
Net realized and unrealized investment gains |
488 | 488 | ||||||||||||||||||||||||||||||
Interest expense |
(37 | ) | (37 | ) | ||||||||||||||||||||||||||||
Amortization of intangible assets |
(27 | ) | (27 | ) | ||||||||||||||||||||||||||||
Net foreign exchange gains |
3 | 3 | ||||||||||||||||||||||||||||||
Income tax expense |
(181 | ) | (181 | ) | ||||||||||||||||||||||||||||
Interest in earnings of equity investments |
9 | 9 | ||||||||||||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||||||||||
Net income |
n/a | $ | 1,023 | |||||||||||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||||||||||
Loss ratio (2) |
65.9 | % | 65.9 | % | 55.1 | % | 17.4 | % | 55.9 | % | ||||||||||||||||||||||
Acquisition ratio (3) |
25.2 | 24.3 | 23.3 | 9.1 | 22.3 | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Technical ratio (4) |
91.1 | % | 90.2 | % | 78.4 | % | 26.5 | % | 78.2 | % | ||||||||||||||||||||||
Other operating expense ratio (5) |
6.9 | |||||||||||||||||||||||||||||||
|
|
|||||||||||||||||||||||||||||||
Combined ratio (6) |
85.1 | % | ||||||||||||||||||||||||||||||
|
|
9
PartnerRe Ltd.
Segment Information
(Expressed in millions of U.S. dollars)
(Unaudited)
For the nine months ended September 30, 2011 | ||||||||||||||||||||||||||||||||
North America |
Global (Non-U.S.) P&C |
Global (Non-U.S.) Specialty |
Catastrophe | Total
Non- life segment |
Life segment |
Corporate and Other |
Total | |||||||||||||||||||||||||
Gross premiums written |
$ | 868 | $ | 585 | $ | 1,092 | $ | 581 | $ | 3,126 | $ | 597 | $ | 12 | $ | 3,735 | ||||||||||||||||
Net premiums written |
$ | 868 | $ | 581 | $ | 1,007 | $ | 542 | $ | 2,998 | $ | 596 | $ | 12 | $ | 3,606 | ||||||||||||||||
(Increase) decrease in unearned premiums |
(18 | ) | (14 | ) | 14 | (110 | ) | (128 | ) | (8 | ) | (4 | ) | (140 | ) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Net premiums earned |
$ | 850 | $ | 567 | $ | 1,021 | $ | 432 | $ | 2,870 | $ | 588 | $ | 8 | $ | 3,466 | ||||||||||||||||
Losses and loss expenses and life policy benefits |
(556 | ) | (379 | ) | (675 | ) | (1,209 | ) | (2,819 | ) | (479 | ) | (5 | ) | (3,303 | ) | ||||||||||||||||
Acquisition costs |
(210 | ) | (145 | ) | (240 | ) | (16 | ) | (611 | ) | (89 | ) | | (700 | ) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Technical result |
$ | 84 | $ | 43 | $ | 106 | $ | (793 | ) | $ | (560 | ) | $ | 20 | $ | 3 | $ | (537 | ) | |||||||||||||
Other income |
4 | | 1 | 5 | ||||||||||||||||||||||||||||
Other operating expenses |
(206 | ) | (38 | ) | (78 | ) | (322 | ) | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Underwriting result |
$ | (762 | ) | $ | (18 | ) | n/a | $ | (854 | ) | ||||||||||||||||||||||
Net investment income |
50 | 424 | 474 | |||||||||||||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||||||||||
Allocated underwriting result (1) |
$ | 32 | n/a | n/a | ||||||||||||||||||||||||||||
Net realized and unrealized investment losses |
(8 | ) | (8 | ) | ||||||||||||||||||||||||||||
Interest expense |
(37 | ) | (37 | ) | ||||||||||||||||||||||||||||
Amortization of intangible assets |
(27 | ) | (27 | ) | ||||||||||||||||||||||||||||
Net foreign exchange gains |
20 | 20 | ||||||||||||||||||||||||||||||
Income tax expense |
(66 | ) | (66 | ) | ||||||||||||||||||||||||||||
Interest in losses of equity investments |
(5 | ) | (5 | ) | ||||||||||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||||||||||
Net loss |
n/a | $ | (503 | ) | ||||||||||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||||||||||
Loss ratio (2) |
65.5 | % | 66.8 | % | 66.1 | % | 279.9 | % | 98.2 | % | ||||||||||||||||||||||
Acquisition ratio (3) |
24.6 | 25.7 | 23.5 | 3.5 | 21.3 | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Technical ratio (4) |
90.1 | % | 92.5 | % | 89.6 | % | 283.4 | % | 119.5 | % | ||||||||||||||||||||||
Other operating expense ratio (5) |
7.2 | |||||||||||||||||||||||||||||||
|
|
|||||||||||||||||||||||||||||||
Combined ratio (6) |
126.7 | % | ||||||||||||||||||||||||||||||
|
|
10
PartnerRe Ltd.
Segment Information
(Expressed in millions of U.S. dollars)
(Unaudited)
Non-life segment
For the three months ended | ||||||||||||||||||||
September 30, 2012 (A) |
June 30, 2012 |
March 31, 2012 |
December 31, 2011 |
September 30, 2011 |
||||||||||||||||
|
|
|||||||||||||||||||
Net premiums written |
$ | 856 | $ | 934 | $ | 1,255 | $ | 690 | $ | 880 | ||||||||||
Net premiums earned |
$ | 1,038 | $ | 890 | $ | 795 | $ | 975 | $ | 1,083 | ||||||||||
Losses and loss expenses |
(561 | ) | (533 | ) | (427 | ) | (898 | ) | (710 | ) | ||||||||||
Acquisition costs |
(219 | ) | (207 | ) | (183 | ) | (211 | ) | (229 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Technical result |
$ | 258 | $ | 150 | $ | 185 | $ | (134 | ) | $ | 144 | |||||||||
Other income |
1 | | 1 | 2 | 1 | |||||||||||||||
Other operating expenses |
(58 | ) | (66 | ) | (63 | ) | (78 | ) | (69 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Underwriting result |
$ | 201 | $ | 84 | $ | 123 | $ | (210 | ) | $ | 76 | |||||||||
Loss ratio (2) |
54.1 | % | 59.9 | % | 53.8 | % | 92.1 | % | 65.6 | % | ||||||||||
Acquisition ratio (3) |
21.1 | 23.2 | 23.0 | 21.6 | 21.1 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Technical ratio (4) |
75.2 | % | 83.1 | % | 76.8 | % | 113.7 | % | 86.7 | % | ||||||||||
Other operating expense ratio (5) |
5.5 | 7.5 | 7.9 | 8.0 | 6.4 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Combined ratio (6) |
80.7 | % | 90.6 | % | 84.7 | % | 121.7 | % | 93.1 | % |
(A) | Comparisons of net premiums written and net premiums earned between periods include the impact of foreign exchange variances. For the three months ended September 30, 2012, net premiums written and net premiums earned include foreign exchange impacts of ($34.6) million and ($48.6) million, respectively, compared to the three months ended September 30, 2011. |
11
PartnerRe Ltd.
Segment Information
(Expressed in millions of U.S. dollars)
(Unaudited)
Non-life segment
For the nine months ended | For the year ended | |||||||||||||||||
September 30, 2012 (A) |
September 30, 2011 |
December 31, 2011 |
December 31, 2010 |
|||||||||||||||
|
|
|
|
|||||||||||||||
Net premiums written |
$ | 3,045 | $ | 2,998 | $ | 3,688 | $ | 3,961 | ||||||||||
Net premiums earned |
$ | 2,724 | $ | 2,870 | $ | 3,844 | $ | 4,029 | ||||||||||
Losses and loss expenses |
(1,522 | ) | (2,819 | ) | (3,717 | ) | (2,657 | ) | ||||||||||
Acquisition costs |
(609 | ) | (611 | ) | (821 | ) | (856 | ) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||||
Technical result |
$ | 593 | $ | (560 | ) | $ | (694 | ) | $ | 516 | ||||||||
Other income |
2 | 4 | 4 | 5 | ||||||||||||||
Other operating expenses |
(187 | ) | (206 | ) | (283 | ) | (317 | ) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||||
Underwriting result |
$ | 408 | $ | (762 | ) | $ | (973 | ) | $ | 204 | ||||||||
Loss ratio (2) |
55.9 | % | 98.2 | % | 96.7 | % | 65.9 | % | ||||||||||
Acquisition ratio (3) |
22.3 | 21.3 | 21.3 | 21.3 | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||
Technical ratio (4) |
78.2 | % | 119.5 | % | 118.0 | % | 87.2 | % | ||||||||||
Other operating expense ratio (5) |
6.9 | 7.2 | 7.4 | 7.8 | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||
Combined ratio (6) |
85.1 | % | 126.7 | % | 125.4 | % | 95.0 | % |
(A) | Comparisons of net premiums written and net premiums earned between periods include the impact of foreign exchange variances. For the nine months ended September 30, 2012, net premiums written and net premiums earned include foreign exchange impacts of ($62.2) million and ($76.3) million, respectively, compared to the nine months ended September 30, 2011. |
12
PartnerRe Ltd.
Segment Information
(Expressed in millions of U.S. dollars)
(Unaudited)
North America sub-segment
For the three months ended | ||||||||||||||||||||
September 30, 2012 (A) |
June 30, 2012 |
March 31, 2012 |
December 31, 2011 |
September 30, 2011 |
||||||||||||||||
|
|
|||||||||||||||||||
Net premiums written |
$ | 311 | $ | 270 | $ | 341 | $ | 235 | $ | 287 | ||||||||||
Net premiums earned |
$ | 335 | $ | 290 | $ | 238 | $ | 285 | $ | 329 | ||||||||||
Losses and loss expenses |
(251 | ) | (185 | ) | (133 | ) | (184 | ) | (192 | ) | ||||||||||
Acquisition costs |
(83 | ) | (69 | ) | (66 | ) | (67 | ) | (80 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Technical result |
$ | 1 | $ | 36 | $ | 39 | $ | 34 | $ | 57 | ||||||||||
Loss ratio (2) |
74.9 | % | 63.7 | % | 55.9 | % | 64.6 | % | 58.4 | % | ||||||||||
Acquisition ratio (3) |
24.8 | 23.8 | 27.5 | 23.6 | 24.3 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Technical ratio (4) |
99.7 | % | 87.5 | % | 83.4 | % | 88.2 | % | 82.7 | % | ||||||||||
Distribution of Net Premiums Written by Major Lines of Business: |
||||||||||||||||||||
Casualty |
42 | % | 37 | % | 47 | % | 40 | % | 37 | % | ||||||||||
Property |
22 | 20 | 22 | 18 | 19 | |||||||||||||||
Agriculture |
18 | 31 | 5 | 20 | 25 | |||||||||||||||
Credit/Surety |
5 | 5 | 5 | 4 | 5 | |||||||||||||||
Multiline |
5 | 4 | 12 | 6 | 5 | |||||||||||||||
Motor |
4 | 2 | 7 | 9 | 7 | |||||||||||||||
Other |
4 | 1 | 2 | 3 | 2 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total |
100 | % | 100 | % | 100 | % | 100 | % | 100 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
(A) | Comparisons of net premiums written and net premiums earned between periods include the impact of foreign exchange variances. For the three months ended September 30, 2012, net premiums written and net premiums earned include foreign exchange impacts of ($0.8) million and ($1.7) million, respectively, compared to the three months ended September 30, 2011. |
13
PartnerRe Ltd.
Segment Information
(Expressed in millions of U.S. dollars)
(Unaudited)
North America sub-segment
For the nine months ended | For the year ended | |||||||||||||||||
September 30, 2012 (A) |
September 30, 2011 |
December 31, 2011 |
December 31, 2010 |
|||||||||||||||
|
|
|
|
|||||||||||||||
Net premiums written |
$ | 922 | $ | 868 | $ | 1,104 | $ | 1,026 | ||||||||||
Net premiums earned |
$ | 863 | $ | 850 | $ | 1,135 | $ | 1,038 | ||||||||||
Losses and loss expenses |
(568 | ) | (556 | ) | (741 | ) | (577 | ) | ||||||||||
Acquisition costs |
(218 | ) | (210 | ) | (276 | ) | (288 | ) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||||
Technical result |
$ | 77 | $ | 84 | $ | 118 | $ | 173 | ||||||||||
Loss ratio (2) |
65.9 | % | 65.5 | % | 65.3 | % | 55.6 | % | ||||||||||
Acquisition ratio (3) |
25.2 | 24.6 | 24.3 | 27.8 | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||
Technical ratio (4) |
91.1 | % | 90.1 | % | 89.6 | % | 83.4 | % | ||||||||||
Distribution of Net Premiums Written by Major Lines of Business: |
||||||||||||||||||
Casualty |
43 | % | 40 | % | 40 | % | 42 | % | ||||||||||
Property |
21 | 18 | 18 | 26 | ||||||||||||||
Agriculture |
17 | 20 | 20 | 8 | ||||||||||||||
Multiline |
7 | 7 | 7 | 5 | ||||||||||||||
Credit/Surety |
5 | 5 | 5 | 6 | ||||||||||||||
Motor |
4 | 9 | 8 | 11 | ||||||||||||||
Other |
3 | 1 | 2 | 2 | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||
Total |
100 | % | 100 | % | 100 | % | 100 | % | ||||||||||
|
|
|
|
|
|
|
|
(A) | Comparisons of net premiums written and net premiums earned between periods include the impact of foreign exchange variances. For the nine months ended September 30, 2012, net premiums written and net premiums earned include foreign exchange impacts of ($2.7) million and ($3.2) million, respectively, compared to the nine months ended September 30, 2011. |
14
PartnerRe Ltd.
Segment Information
(Expressed in millions of U.S. dollars)
(Unaudited)
Global (Non-U.S.) P&C sub-segment
For the three months ended | ||||||||||||||||||||
September 30, 2012 (A) |
June 30, 2012 |
March 31, 2012 |
December 31, 2011 |
September 30, 2011 |
||||||||||||||||
|
|
|||||||||||||||||||
Net premiums written |
$ | 122 | $ | 128 | $ | 346 | $ | 97 | $ | 144 | ||||||||||
Net premiums earned |
$ | 172 | $ | 164 | $ | 159 | $ | 192 | $ | 193 | ||||||||||
Losses and loss expenses |
(110 | ) | (119 | ) | (98 | ) | (188 | ) | (102 | ) | ||||||||||
Acquisition costs |
(42 | ) | (39 | ) | (38 | ) | (45 | ) | (52 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Technical result |
$ | 20 | $ | 6 | $ | 23 | $ | (41 | ) | $ | 39 | |||||||||
Loss ratio (2) |
63.9 | % | 72.3 | % | 61.6 | % | 97.8 | % | 52.9 | % | ||||||||||
Acquisition ratio (3) |
24.9 | 23.9 | 23.9 | 23.6 | 26.9 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Technical ratio (4) |
88.8 | % | 96.2 | % | 85.5 | % | 121.4 | % | 79.8 | % | ||||||||||
Distribution of Net Premiums Written by Major Lines of Business: |
||||||||||||||||||||
Property |
60 | % | 67 | % | 62 | % | 69 | % | 71 | % | ||||||||||
Motor |
30 | 23 | 27 | 18 | 21 | |||||||||||||||
Casualty |
10 | 10 | 11 | 13 | 8 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total |
100 | % | 100 | % | 100 | % | 100 | % | 100 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
(A) | Comparisons of net premiums written and net premiums earned between periods include the impact of foreign exchange variances. For the three months ended September 30, 2012, net premiums written and net premiums earned include foreign exchange impacts of ($13.6) million and ($19.5) million, respectively, compared to the three months ended September 30, 2011. |
15
PartnerRe Ltd.
Segment Information
(Expressed in millions of U.S. dollars)
(Unaudited)
Global (Non-U.S.) P&C sub-segment
For the nine months ended | For the year ended | |||||||||||||||||
September 30, 2012 (A) |
September 30, 2011 |
December 31, 2011 |
December 31, 2010 |
|||||||||||||||
|
|
|
|
|||||||||||||||
Net premiums written |
$ | 596 | $ | 581 | $ | 678 | $ | 898 | ||||||||||
Net premiums earned |
$ | 496 | $ | 567 | $ | 759 | $ | 914 | ||||||||||
Losses and loss expenses |
(327 | ) | (379 | ) | (567 | ) | (702 | ) | ||||||||||
Acquisition costs |
(120 | ) | (145 | ) | (191 | ) | (227 | ) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||||
Technical result |
$ | 49 | $ | 43 | $ | 1 | $ | (15 | ) | |||||||||
Loss ratio (2) |
65.9 | % | 66.8 | % | 74.7 | % | 76.8 | % | ||||||||||
Acquisition ratio (3) |
24.3 | 25.7 | 25.1 | 24.9 | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||
Technical ratio (4) |
90.2 | % | 92.5 | % | 99.8 | % | 101.7 | % | ||||||||||
Distribution of Net Premiums Written by Major Lines of Business: |
||||||||||||||||||
Property |
62 | % | 70 | % | 70 | % | 66 | % | ||||||||||
Motor |
27 | 20 | 20 | 22 | ||||||||||||||
Casualty |
11 | 10 | 10 | 12 | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||
Total |
100 | % | 100 | % | 100 | % | 100 | % | ||||||||||
|
|
|
|
|
|
|
|
(A) | Comparisons of net premiums written and net premiums earned between periods include the impact of foreign exchange variances. For the nine months ended September 30, 2012, net premiums written and net premiums earned include foreign exchange impacts of ($24.7) million and ($30.2) million, respectively, compared to the nine months ended September 30, 2011. |
16
PartnerRe Ltd.
Segment Information
(Expressed in millions of U.S. dollars)
(Unaudited)
Global (Non-U.S.) Specialty sub-segment
For the three months ended | ||||||||||||||||||||
September 30, 2012 (A) |
June 30, 2012 |
March 31, 2012 |
December 31, 2011 |
September 30, 2011 |
||||||||||||||||
|
|
|||||||||||||||||||
Net premiums written |
$ | 354 | $ | 391 | $ | 353 | $ | 337 | $ | 360 | ||||||||||
Net premiums earned |
$ | 363 | $ | 363 | $ | 308 | $ | 356 | $ | 362 | ||||||||||
Losses and loss expenses |
(161 | ) | (213 | ) | (194 | ) | (276 | ) | (247 | ) | ||||||||||
Acquisition costs |
(79 | ) | (93 | ) | (70 | ) | (88 | ) | (82 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Technical result |
$ | 123 | $ | 57 | $ | 44 | $ | (8 | ) | $ | 33 | |||||||||
Loss ratio (2) |
44.4 | % | 58.8 | % | 63.2 | % | 77.5 | % | 68.3 | % | ||||||||||
Acquisition ratio (3) |
21.7 | 25.5 | 22.6 | 24.6 | 22.7 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Technical ratio (4) |
66.1 | % | 84.3 | % | 85.8 | % | 102.1 | % | 91.0 | % | ||||||||||
Distribution of Net Premiums Written by Major Lines of Business: |
||||||||||||||||||||
Aviation/Space |
13 | % | 14 | % | 14 | % | 20 | % | 16 | % | ||||||||||
Credit/Surety |
18 | 18 | 21 | 19 | 18 | |||||||||||||||
Energy |
9 | 7 | 4 | 8 | 11 | |||||||||||||||
Engineering |
14 | 10 | 11 | 15 | 13 | |||||||||||||||
Marine |
25 | 23 | 20 | 21 | 20 | |||||||||||||||
Specialty casualty |
4 | 9 | 14 | 2 | 4 | |||||||||||||||
Specialty property |
12 | 12 | 9 | 11 | 13 | |||||||||||||||
Other |
5 | 7 | 7 | 4 | 5 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total |
100 | % | 100 | % | 100 | % | 100 | % | 100 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
(A) | Comparisons of net premiums written and net premiums earned between periods include the impact of foreign exchange variances. For the three months ended September 30, 2012, net premiums written and net premiums earned include foreign exchange impacts of ($19.5) million and ($22.2) million, respectively, compared to the three months ended September 30, 2011. |
17
PartnerRe Ltd.
Segment Information
(Expressed in millions of U.S. dollars)
(Unaudited)
Global (Non-U.S.) Specialty sub-segment
For the nine months ended | For the year ended | |||||||||||||||||
September 30, 2012 (A) |
September 30, 2011 |
December 31, 2011 |
December 31, 2010 |
|||||||||||||||
|
|
|
|
|||||||||||||||
Net premiums written |
$ | 1,098 | $ | 1,007 | $ | 1,344 | $ | 1,391 | ||||||||||
Net premiums earned |
$ | 1,034 | $ | 1,021 | $ | 1,376 | $ | 1,405 | ||||||||||
Losses and loss expenses |
(569 | ) | (675 | ) | (950 | ) | (985 | ) | ||||||||||
Acquisition costs |
(241 | ) | (240 | ) | (328 | ) | (292 | ) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||||
Technical result |
$ | 224 | $ | 106 | $ | 98 | $ | 128 | ||||||||||
Loss ratio (2) |
55.1 | % | 66.1 | % | 69.1 | % | 70.0 | % | ||||||||||
Acquisition ratio (3) |
23.3 | 23.5 | 23.8 | 20.8 | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||
Technical ratio (4) |
78.4 | % | 89.6 | % | 92.9 | % | 90.8 | % | ||||||||||
Distribution of Net Premiums Written by Major Lines of Business: |
||||||||||||||||||
Aviation/Space |
14 | % | 14 | % | 16 | % | 16 | % | ||||||||||
Credit/Surety |
19 | 21 | 20 | 16 | ||||||||||||||
Energy |
7 | 8 | 8 | 8 | ||||||||||||||
Engineering |
11 | 13 | 14 | 14 | ||||||||||||||
Marine |
23 | 20 | 20 | 20 | ||||||||||||||
Specialty casualty |
9 | 10 | 8 | 11 | ||||||||||||||
Specialty property |
11 | 10 | 10 | 8 | ||||||||||||||
Other |
6 | 4 | 4 | 7 | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||
Total |
100 | % | 100 | % | 100 | % | 100 | % | ||||||||||
|
|
|
|
|
|
|
|
(A) | Comparisons of net premiums written and net premiums earned between periods include the impact of foreign exchange variances. For the nine months ended September 30, 2012, net premiums written and net premiums earned include foreign exchange impacts of ($33.1) million and ($36.8) million, respectively, compared to the nine months ended September 30, 2011. |
18
PartnerRe Ltd.
Segment Information
(Expressed in millions of U.S. dollars)
(Unaudited)
Catastrophe sub-segment
For the three months ended | ||||||||||||||||||||
September 30, 2012 (A) |
June 30, 2012 |
March 31, 2012 |
December 31, 2011 |
September 30, 2011 |
||||||||||||||||
|
|
|||||||||||||||||||
Net premiums written |
$ | 69 | $ | 145 | $ | 215 | $ | 21 | $ | 89 | ||||||||||
Net premiums earned |
$ | 168 | $ | 73 | $ | 90 | $ | 142 | $ | 199 | ||||||||||
Losses and loss expenses |
(39 | ) | (16 | ) | (2 | ) | (250 | ) | (169 | ) | ||||||||||
Acquisition costs |
(15 | ) | (6 | ) | (9 | ) | (11 | ) | (15 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Technical result |
$ | 114 | $ | 51 | $ | 79 | $ | (119 | ) | $ | 15 | |||||||||
Loss ratio (2) |
23.3 | % | 22.5 | % | 2.1 | % | 175.9 | % | 85.0 | % | ||||||||||
Acquisition ratio (3) |
8.8 | 8.3 | 10.5 | 7.6 | 7.4 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Technical ratio (4) |
32.1 | % | 30.8 | % | 12.6 | % | 183.5 | % | 92.4 | % |
(A) | Comparisons of net premiums written and net premiums earned between periods include the impact of foreign exchange variances. For the three months ended September 30, 2012, net premiums written and net premiums earned include foreign exchange impacts of ($0.7) million and ($5.1) million, respectively, compared to the three months ended September 30, 2011. |
19
PartnerRe Ltd.
Segment Information
(Expressed in millions of U.S. dollars)
(Unaudited)
Catastrophe sub-segment
For the nine months ended | For the year ended | |||||||||||||||||
September 30, 2012 (A) |
September 30, 2011 |
December 31, 2011 |
December 31, 2010 |
|||||||||||||||
|
|
|
|
|||||||||||||||
Net premiums written |
$ | 429 | $ | 542 | $ | 562 | $ | 646 | ||||||||||
Net premiums earned |
$ | 331 | $ | 432 | $ | 574 | $ | 672 | ||||||||||
Losses and loss expenses |
(58 | ) | (1,209 | ) | (1,459 | ) | (393 | ) | ||||||||||
Acquisition costs |
(30 | ) | (16 | ) | (26 | ) | (49 | ) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||||
Technical result |
$ | 243 | $ | (793 | ) | $ | (911 | ) | $ | 230 | ||||||||
Loss ratio (2) |
17.4 | % | 279.9 | % | 254.2 | % | 58.5 | % | ||||||||||
Acquisition ratio (3) |
9.1 | 3.5 | 4.5 | 7.2 | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||
Technical ratio (4) |
26.5 | % | 283.4 | % | 258.7 | % | 65.7 | % |
(A) | Comparisons of net premiums written and net premiums earned between periods include the impact of foreign exchange variances. For the nine months ended September 30, 2012, net premiums written and net premiums earned include foreign exchange impacts of ($1.7) million and ($6.1) million, respectively, compared to the nine months ended September 30, 2011. |
20
PartnerRe Ltd.
Segment Information
(Expressed in millions of U.S. dollars)
(Unaudited)
Life segment
For the three months ended | ||||||||||||||||||||
September 30, 2012 (A) |
June 30, 2012 |
March 31, 2012 |
December 31, 2011 |
September 30, 2011 |
||||||||||||||||
|
|
|||||||||||||||||||
Net premiums written |
$ | 187 | $ | 199 | $ | 215 | $ | 190 | $ | 194 | ||||||||||
Net premiums earned |
$ | 195 | $ | 200 | $ | 194 | $ | 203 | $ | 203 | ||||||||||
Life policy benefits |
(157 | ) | (173 | ) | (149 | ) | (171 | ) | (168 | ) | ||||||||||
Acquisition costs |
(27 | ) | (26 | ) | (29 | ) | (28 | ) | (33 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Technical result |
$ | 11 | $ | 1 | $ | 16 | $ | 4 | $ | 2 | ||||||||||
Other income |
1 | 1 | | 1 | | |||||||||||||||
Other operating expenses |
(12 | ) | (13 | ) | (12 | ) | (15 | ) | (12 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Underwriting result |
$ | | $ | (11 | ) | $ | 4 | $ | (10 | ) | $ | (10 | ) | |||||||
Net investment income |
15 | 17 | 17 | 16 | 19 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Allocated underwriting result (1) |
$ | 15 | $ | 6 | $ | 21 | $ | 6 | $ | 9 | ||||||||||
Distribution of Net Premiums Written by Major Lines of Business: |
||||||||||||||||||||
Mortality |
64 | % | 65 | % | 71 | % | 66 | % | 71 | % | ||||||||||
Longevity |
33 | 32 | 27 | 31 | 26 | |||||||||||||||
Health |
3 | 3 | 2 | 3 | 3 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total |
100 | % | 100 | % | 100 | % | 100 | % | 100 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
(A) | Comparisons of net premiums written and net premiums earned between periods include the impact of foreign exchange variances. For the three months ended September 30, 2012, net premiums written and net premiums earned include foreign exchange impacts of ($16.7) million and ($18.1) million, respectively, compared to the three months ended September 30, 2011. |
21
PartnerRe Ltd.
Segment Information
(Expressed in millions of U.S. dollars)
(Unaudited)
Life segment
For the nine months ended | For the year ended | |||||||||||||||||
September 30, 2012 (A) |
September 30, 2011 |
December 31, 2011 |
December 31, 2010 |
|||||||||||||||
|
|
|
|
|||||||||||||||
Net premiums written |
$ | 601 | $ | 596 | $ | 786 | $ | 742 | ||||||||||
Net premiums earned |
$ | 589 | $ | 588 | $ | 792 | $ | 744 | ||||||||||
Life policy benefits |
(479 | ) | (479 | ) | (650 | ) | (624 | ) | ||||||||||
Acquisition costs |
(82 | ) | (89 | ) | (117 | ) | (116 | ) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||||
Technical result |
$ | 28 | $ | 20 | $ | 25 | $ | 4 | ||||||||||
Other income |
3 | | 1 | 2 | ||||||||||||||
Other operating expenses |
(38 | ) | (38 | ) | (53 | ) | (57 | ) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||||
Underwriting result |
$ | (7 | ) | $ | (18 | ) | $ | (27 | ) | $ | (51 | ) | ||||||
Net investment income |
49 | 50 | 66 | 71 | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||
Allocated underwriting result (1) |
$ | 42 | $ | 32 | $ | 39 | $ | 20 | ||||||||||
Distribution of Net Premiums Written by Major Lines of Business: |
||||||||||||||||||
Mortality |
67 | % | 73 | % | 71 | % | 70 | % | ||||||||||
Longevity |
31 | 24 | 26 | 27 | ||||||||||||||
Health |
2 | 3 | 3 | 3 | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||
Total |
100 | % | 100 | % | 100 | % | 100 | % | ||||||||||
|
|
|
|
|
|
|
|
(A) | Comparisons of net premiums written and net premiums earned between periods include the impact of foreign exchange variances. For the nine months ended September 30, 2012, net premiums written and net premiums earned include foreign exchange impacts of ($29.8) million and ($31.2) million, respectively, compared to the nine months ended September 30, 2011. |
22
PartnerRe Ltd.
Segment Information
(Expressed in millions of U.S. dollars)
(Unaudited)
Corporate and Other
For the three months ended | ||||||||||||||||||||
September 30, 2012 |
June 30, 2012 |
March 31, 2012 |
December 31, 2011 |
September 30, 2011 |
||||||||||||||||
|
|
|||||||||||||||||||
Technical result |
$ | | $ | 1 | $ | 1 | $ | 3 | $ | 4 | ||||||||||
Other income |
1 | 2 | 1 | | | |||||||||||||||
Corporate expenses - acquisition related |
| | | | (1 | ) | ||||||||||||||
Corporate expenses |
(23 | ) | (22 | ) | (20 | ) | (16 | ) | (19 | ) | ||||||||||
Other operating expenses |
(2 | ) | (5 | ) | (3 | ) | (4 | ) | (3 | ) | ||||||||||
Net investment income |
120 | 136 | 130 | 140 | 145 | |||||||||||||||
Net realized and unrealized investment gains |
257 | 38 | 193 | 74 | 26 | |||||||||||||||
Interest expense |
(12 | ) | (12 | ) | (12 | ) | (12 | ) | (12 | ) | ||||||||||
Amortization of intangible assets |
(9 | ) | (9 | ) | (9 | ) | (9 | ) | (9 | ) | ||||||||||
Net foreign exchange (losses) gains |
(2 | ) | 8 | (3 | ) | 15 | 11 | |||||||||||||
Income tax expense |
(64 | ) | (50 | ) | (67 | ) | (3 | ) | (42 | ) | ||||||||||
Interest in earnings (losses) of equity investments |
5 | (1 | ) | 5 | (2 | ) | (5 | ) |
23
PartnerRe Ltd.
Segment Information
(Expressed in millions of U.S. dollars)
(Unaudited)
Corporate and Other
For the nine months ended | For the year ended | |||||||||||||||||
September 30, 2012 |
September 30, 2011 |
December 31, 2011 |
December 31, 2010 |
|||||||||||||||
|
|
|
|
|||||||||||||||
Technical result |
$ | 2 | $ | 3 | $ | 6 | $ | | ||||||||||
Other income |
3 | 1 | 3 | 3 | ||||||||||||||
Corporate expenses - acquisition related |
| (4 | ) | (4 | ) | (16 | ) | |||||||||||
Corporate expenses - voluntary termination plan |
| | | (41 | ) | |||||||||||||
Corporate expenses (1) |
(64 | ) | (62 | ) | (79 | ) | (94 | ) | ||||||||||
Other operating expenses |
(10 | ) | (12 | ) | (16 | ) | (15 | ) | ||||||||||
Net investment income |
387 | 424 | 563 | 602 | ||||||||||||||
Net realized and unrealized investment gains (losses) |
488 | (8 | ) | 67 | 402 | |||||||||||||
Interest expense |
(37 | ) | (37 | ) | (49 | ) | (44 | ) | ||||||||||
Amortization of intangible assets |
(27 | ) | (27 | ) | (36 | ) | (31 | ) | ||||||||||
Net foreign exchange gains (losses) |
3 | 20 | 34 | (21 | ) | |||||||||||||
Income tax expense |
(181 | ) | (66 | ) | (69 | ) | (129 | ) | ||||||||||
Interest in earnings (losses) of equity investments |
9 | (5 | ) | (6 | ) | 13 |
(1) | The Companys corporate expenses for the year ended December 31, 2010 includes $13 million of corporate expenses related to Paris Re. |
24
PartnerRe Ltd.
Distribution of Premiums
(Unaudited)
For the three months ended | ||||||||||||||||||||
September 30, 2012 |
June 30, 2012 |
March 31, 2012 |
December 31, 2011 |
September 30, 2011 |
||||||||||||||||
|
|
|||||||||||||||||||
Distribution of Net Premiums Written by Line of Business: |
||||||||||||||||||||
Non-life |
||||||||||||||||||||
Property and casualty |
||||||||||||||||||||
Property |
14 | % | 12 | % | 19 | % | 12 | % | 14 | % | ||||||||||
Casualty |
14 | 10 | 13 | 12 | 11 | |||||||||||||||
Motor |
5 | 3 | 8 | 4 | 5 | |||||||||||||||
Multiline and other |
2 | 1 | 3 | 2 | 3 | |||||||||||||||
Specialty |
||||||||||||||||||||
Agriculture |
7 | 10 | 3 | 7 | 8 | |||||||||||||||
Aviation/Space |
5 | 5 | 4 | 9 | 5 | |||||||||||||||
Catastrophe |
6 | 13 | 15 | 2 | 8 | |||||||||||||||
Credit/Surety |
7 | 8 | 6 | 8 | 7 | |||||||||||||||
Energy |
3 | 2 | 1 | 3 | 4 | |||||||||||||||
Engineering |
5 | 3 | 3 | 6 | 4 | |||||||||||||||
Marine |
9 | 8 | 5 | 8 | 7 | |||||||||||||||
Specialty casualty |
1 | 3 | 3 | 1 | 1 | |||||||||||||||
Specialty property |
4 | 4 | 2 | 4 | 5 | |||||||||||||||
Life |
18 | 18 | 15 | 22 | 18 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
100 | % | 100 | % | 100 | % | 100 | % | 100 | % | |||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Distribution of Gross Premiums Written by Geography: |
||||||||||||||||||||
North America |
38 | % | 39 | % | 33 | % | 34 | % | 37 | % | ||||||||||
Europe |
37 | 36 | 48 | 45 | 38 | |||||||||||||||
Asia, Australia and New Zealand |
12 | 13 | 9 | 10 | 13 | |||||||||||||||
Latin America, Caribbean and Africa |
13 | 12 | 10 | 11 | 12 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
100 | % | 100 | % | 100 | % | 100 | % | 100 | % | |||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Distribution of Gross Premiums Written by Production Source: |
||||||||||||||||||||
Broker |
73 | % | 77 | % | 72 | % | 68 | % | 74 | % | ||||||||||
Direct |
27 | 23 | 28 | 32 | 26 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
100 | % | 100 | % | 100 | % | 100 | % | 100 | % | |||||||||||
|
|
|
|
|
|
|
|
|
|
25
PartnerRe Ltd.
Distribution of Premiums
(Unaudited)
For the nine months ended | For the year ended | |||||||||||||||||
September 30, 2012 |
September 30, 2011 |
December 31, 2011 |
December 31, 2010 |
|||||||||||||||
|
|
|
|
|||||||||||||||
Distribution of Net Premiums Written by Line of Business: |
||||||||||||||||||
Non-life |
||||||||||||||||||
Property and casualty |
||||||||||||||||||
Property |
16 | % | 16 | % | 15 | % | 18 | % | ||||||||||
Casualty |
12 | 11 | 11 | 11 | ||||||||||||||
Motor |
6 | 5 | 5 | 7 | ||||||||||||||
Multiline and other |
2 | 2 | 2 | 2 | ||||||||||||||
Specialty |
||||||||||||||||||
Agriculture |
6 | 6 | 7 | 4 | ||||||||||||||
Aviation/Space |
5 | 4 | 5 | 5 | ||||||||||||||
Catastrophe |
12 | 15 | 13 | 14 | ||||||||||||||
Credit/Surety |
7 | 7 | 7 | 6 | ||||||||||||||
Energy |
2 | 2 | 2 | 2 | ||||||||||||||
Engineering |
3 | 4 | 4 | 4 | ||||||||||||||
Marine |
7 | 6 | 6 | 6 | ||||||||||||||
Specialty casualty |
3 | 3 | 2 | 3 | ||||||||||||||
Specialty property |
3 | 3 | 3 | 2 | ||||||||||||||
Life |
16 | 16 | 18 | 16 | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||
100 | % | 100 | % | 100 | % | 100 | % | |||||||||||
|
|
|
|
|
|
|
|
|||||||||||
Distribution of Gross Premiums Written by Geography: |
||||||||||||||||||
Europe |
42 | % | 41 | % | 41 | % | 43 | % | ||||||||||
North America |
36 | 36 | 36 | 36 | ||||||||||||||
Asia, Australia and New Zealand |
11 | 12 | 12 | 10 | ||||||||||||||
Latin America, Caribbean and Africa |
11 | 11 | 11 | 11 | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||
100 | % | 100 | % | 100 | % | 100 | % | |||||||||||
|
|
|
|
|
|
|
|
|||||||||||
Distribution of Gross Premiums Written by Production Source: |
||||||||||||||||||
Broker |
74 | % | 73 | % | 72 | % | 73 | % | ||||||||||
Direct |
26 | 27 | 28 | 27 | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||
100 | % | 100 | % | 100 | % | 100 | % | |||||||||||
|
|
|
|
|
|
|
|
26
PartnerRe Ltd.
Distribution of Premiums
(Unaudited)
For the three months ended | ||||||||||||||||||||
September 30, 2012 |
June 30, 2012 |
March 31, 2012 |
December 31, 2011 |
September 30, 2011 |
||||||||||||||||
|
|
|||||||||||||||||||
Distribution of Gross Premiums Written by Reinsurance Type for the Non-life sub-segment: |
||||||||||||||||||||
North America |
||||||||||||||||||||
Non-Proportional |
22 | % | 19 | % | 50 | % | 16 | % | 26 | % | ||||||||||
Proportional |
78 | 81 | 50 | 84 | 74 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total |
100 | % | 100 | % | 100 | % | 100 | % | 100 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Global (Non-U.S.) P&C |
||||||||||||||||||||
Non-Proportional |
20 | % | 13 | % | 34 | % | 11 | % | 19 | % | ||||||||||
Proportional |
80 | 87 | 66 | 89 | 81 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total |
100 | % | 100 | % | 100 | % | 100 | % | 100 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Global (Non-U.S.) Specialty |
||||||||||||||||||||
Non-Proportional |
14 | % | 24 | % | 31 | % | 7 | % | 17 | % | ||||||||||
Proportional |
86 | 76 | 69 | 93 | 83 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total |
100 | % | 100 | % | 100 | % | 100 | % | 100 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Catastrophe |
||||||||||||||||||||
Non-Proportional |
98 | % | 97 | % | 98 | % | 96 | % | 98 | % | ||||||||||
Proportional |
2 | 3 | 2 | 4 | 2 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total |
100 | % | 100 | % | 100 | % | 100 | % | 100 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Non-life total |
||||||||||||||||||||
Non-Proportional |
25 | % | 33 | % | 49 | % | 13 | % | 29 | % | ||||||||||
Proportional |
75 | 67 | 51 | 87 | 71 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total |
100 | % | 100 | % | 100 | % | 100 | % | 100 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
27
PartnerRe Ltd.
Distribution of Premiums
(Unaudited)
For the nine months ended | For the year ended | |||||||||||||||||
September 30, 2012 |
September 30, 2011 |
December 31, 2011 |
December 31, 2010 |
|||||||||||||||
|
|
|
|
|||||||||||||||
Distribution of Gross Premiums Written by Reinsurance Type Non-life sub-segment: |
||||||||||||||||||
North America |
||||||||||||||||||
Non-Proportional |
31 | % | 34 | % | 30 | % | 33 | % | ||||||||||
Proportional |
69 | 66 | 70 | 67 | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||
Total |
100 | % | 100 | % | 100 | % | 100 | % | ||||||||||
|
|
|
|
|
|
|
|
|||||||||||
Global (Non-U.S.) P&C |
||||||||||||||||||
Non-Proportional |
26 | % | 25 | % | 23 | % | 23 | % | ||||||||||
Proportional |
74 | 75 | 77 | 77 | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||
Total |
100 | % | 100 | % | 100 | % | 100 | % | ||||||||||
|
|
|
|
|
|
|
|
|||||||||||
Global (Non-U.S.) Specialty |
||||||||||||||||||
Non-Proportional |
24 | % | 23 | % | 19 | % | 22 | % | ||||||||||
Proportional |
76 | 77 | 81 | 78 | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||
Total |
100 | % | 100 | % | 100 | % | 100 | % | ||||||||||
|
|
|
|
|
|
|
|
|||||||||||
Catastrophe |
||||||||||||||||||
Non-Proportional |
98 | % | 98 | % | 98 | % | 99 | % | ||||||||||
Proportional |
2 | 2 | 2 | 1 | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||
Total |
100 | % | 100 | % | 100 | % | 100 | % | ||||||||||
|
|
|
|
|
|
|
|
|||||||||||
Non-life total |
||||||||||||||||||
Non-Proportional |
37 | % | 41 | % | 35 | % | 38 | % | ||||||||||
Proportional |
63 | 59 | 65 | 62 | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||
Total |
100 | % | 100 | % | 100 | % | 100 | % | ||||||||||
|
|
|
|
|
|
|
|
28
PartnerRe Ltd.
Investment Portfolio
(Expressed in millions of U.S. dollars)
(Unaudited)
September 30, 2012 |
June 30, 2012 |
March 31, 2012 |
December 31, 2011 |
September 30, 2011 |
December 31, 2010 |
|||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||
Investments: |
||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed maturities |
||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. government |
$ | 958 | 6 | % | $ | 922 | 6 | % | $ | 1,066 | 7 | % | $ | 1,090 | 7 | % | $ | 1,162 | 7 | % | $ | 673 | 5 | % | ||||||||||||||||||||||||||
Government Sponsored Enterprises (GSEs) |
25 | | 22 | | 23 | | 26 | | 26 | | 233 | 2 | ||||||||||||||||||||||||||||||||||||||
U.S. states, territories and municipalities |
219 | 1 | 127 | 1 | 130 | 1 | 124 | 1 | 101 | 1 | 67 | | ||||||||||||||||||||||||||||||||||||||
Non-U.S. sovereign government,supranational and government related |
2,638 | 17 | 2,651 | 18 | 3,070 | 19 | 2,964 | 19 | 3,230 | 20 | 2,819 | 20 | ||||||||||||||||||||||||||||||||||||||
Corporates |
6,378 | 40 | 5,813 | 39 | 6,067 | 39 | 5,747 | 38 | 6,120 | 39 | 6,144 | 43 | ||||||||||||||||||||||||||||||||||||||
Mortgage/asset-backed securities |
4,121 | 26 | 4,085 | 27 | 4,056 | 26 | 3,991 | 26 | 3,717 | 24 | 2,889 | 20 | ||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Total fixed maturities |
14,339 | 90 | 13,620 | 91 | 14,412 | 92 | 13,942 | 91 | 14,356 | 91 | 12,825 | 90 | ||||||||||||||||||||||||||||||||||||||
Short-term investments |
161 | 1 | 32 | | 39 | | 42 | | 98 | 1 | 49 | | ||||||||||||||||||||||||||||||||||||||
Equities |
1,072 | 7 | 1,050 | 7 | 943 | 6 | 945 | 6 | 1,001 | 6 | 1,072 | 8 | ||||||||||||||||||||||||||||||||||||||
Other invested assets |
341 | 2 | 330 | 2 | 361 | 2 | 358 | 3 | 335 | 2 | 352 | 2 | ||||||||||||||||||||||||||||||||||||||
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|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Total investments |
$ | 15,913 | 100 | % | $ | 15,032 | 100 | % | $ | 15,755 | 100 | % | $ | 15,287 | 100 | % | $ | 15,790 | 100 | % | $ | 14,298 | 100 | % | ||||||||||||||||||||||||||
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|
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|
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|
|
|||||||||||||||||||||||||||
Cash and cash equivalents |
1,336 | 1,512 | 1,210 | 1,343 | 1,073 | 2,111 | ||||||||||||||||||||||||||||||||||||||||||||
Total investments and cash |
$ | 17,249 | $ | 16,544 | $ | 16,965 | $ | 16,630 | $ | 16,863 | $ | 16,409 | ||||||||||||||||||||||||||||||||||||||
Maturity distribution: |
||||||||||||||||||||||||||||||||||||||||||||||||||
One year or less |
$ | 1,175 | 8 | % | $ | 872 | 6 | % | $ | 597 | 4 | % | $ | 571 | 4 | % | $ | 576 | 4 | % | $ | 930 | 7 | % | ||||||||||||||||||||||||||
More than one year through five years |
4,071 | 28 | 4,193 | 31 | 5,038 | 35 | 4,923 | 35 | 5,580 | 39 | 5,022 | 39 | ||||||||||||||||||||||||||||||||||||||
More than five years through ten years |
4,232 | 29 | 3,696 | 27 | 3,954 | 27 | 3,713 | 26 | 3,840 | 26 | 3,418 | 27 | ||||||||||||||||||||||||||||||||||||||
More than ten years |
901 | 7 | 806 | 6 | 806 | 6 | 786 | 6 | 741 | 5 | 615 | 5 | ||||||||||||||||||||||||||||||||||||||
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|
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|
|||||||||||||||||||||||||||
Subtotal |
10,379 | 72 | 9,567 | 70 | 10,395 | 72 | 9,993 | 71 | 10,737 | 74 | 9,985 | 78 | ||||||||||||||||||||||||||||||||||||||
Mortgage/asset-backed securities |
4,121 | 28 | 4,085 | 30 | 4,056 | 28 | 3,991 | 29 | 3,717 | 26 | 2,889 | 22 | ||||||||||||||||||||||||||||||||||||||
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|
|||||||||||||||||||||||||||
Total |
$ | 14,500 | 100 | % | $ | 13,652 | 100 | % | $ | 14,451 | 100 | % | $ | 13,984 | 100 | % | $ | 14,454 | 100 | % | $ | 12,874 | 100 | % | ||||||||||||||||||||||||||
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|
|||||||||||||||||||||||||||
Credit quality by market value: (A) |
||||||||||||||||||||||||||||||||||||||||||||||||||
AAA |
15 | % | 16 | % | 18 | % | 25 | % | 28 | % | 51 | % | ||||||||||||||||||||||||||||||||||||||
AA |
42 | 43 | 42 | 37 | 35 | 9 | ||||||||||||||||||||||||||||||||||||||||||||
A |
21 | 21 | 21 | 21 | 21 | 22 | ||||||||||||||||||||||||||||||||||||||||||||
BBB |
14 | 14 | 13 | 11 | 11 | 11 | ||||||||||||||||||||||||||||||||||||||||||||
Below Investment Grade/Unrated |
8 | 6 | 6 | 6 | 5 | 7 | ||||||||||||||||||||||||||||||||||||||||||||
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|
|||||||||||||||||||||||||||||||||||||||
100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | |||||||||||||||||||||||||||||||||||||||
|
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|
|||||||||||||||||||||||||||||||||||||||
Expected average duration |
3.0 | Yrs | 3.0 | Yrs | 2.9 | Yrs | 2.9 | Yrs | 3.0 | Yrs | 3.0 | Yrs | ||||||||||||||||||||||||||||||||||||||
Average yield to maturity at market |
1.9 | % | 2.3 | % | 2.3 | % | 2.4 | % | 2.5 | % | 2.9 | % | ||||||||||||||||||||||||||||||||||||||
Average credit quality |
A | A | AA | AA | AA | AA |
(A) | The decrease in AAA rated securities and the corresponding increase in AA rated securities at March 31, 2012 compared to December 31, 2011 largely reflects Standard & Poors decision in January 2012 to downgrade 9 Eurozone sovereign governments. While other rating agencies did not take similar action, it is the Companys policy to use Standard & Poors ratings, when available, to rate its investments. |
29
PartnerRe Ltd.
Distribution of Corporate Bonds
(Expressed in thousands of U.S. dollars)
(Unaudited)
September 30, 2012 | ||||||||||||||||||||||||
Fair Value | Percentage to Total Fair Value of Corporate Bonds |
Percentage to Invested Assets and cash |
Largest Single issuer as a Percentage of Invested Assets and cash |
|||||||||||||||||||||
Distribution by sector - Corporate bonds |
||||||||||||||||||||||||
Finance |
$ | 1,374,406 | 21.6 | % | 8.0 | % | 0.7 | % | ||||||||||||||||
Consumer noncyclical |
934,521 | 14.7 | 5.4 | 0.3 | ||||||||||||||||||||
Communications |
698,074 | 10.9 | 4.0 | 0.4 | ||||||||||||||||||||
Utilities |
634,086 | 9.9 | 3.7 | 0.3 | ||||||||||||||||||||
Energy |
461,760 | 7.2 | 2.7 | 0.5 | ||||||||||||||||||||
Industrials |
422,237 | 6.6 | 2.4 | 0.2 | ||||||||||||||||||||
Consumer cyclical |
381,541 | 6.0 | 2.2 | 0.3 | ||||||||||||||||||||
Government guaranteed corporate debt |
379,809 | 6.0 | 2.2 | 0.4 | ||||||||||||||||||||
Insurance |
254,016 | 4.0 | 1.5 | 0.2 | ||||||||||||||||||||
Materials |
234,532 | 3.7 | 1.4 | 0.1 | ||||||||||||||||||||
Catastrophe bonds |
203,168 | 3.2 | 1.2 | 0.2 | ||||||||||||||||||||
Longevity and mortality bonds |
164,255 | 2.6 | 1.0 | 0.3 | ||||||||||||||||||||
Technology |
129,931 | 2.0 | 0.7 | 0.1 | ||||||||||||||||||||
Real estate investment trusts |
96,913 | 1.5 | 0.6 | 0.1 | ||||||||||||||||||||
Diversified |
8,606 | 0.1 | | | ||||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||
Total Corporate bonds |
$ | 6,377,855 | 100.0 | % | 37.0 | % | ||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||
Finance sector - Corporate bonds |
||||||||||||||||||||||||
Banks |
$ | 646,233 | 10.1 | % | 3.7 | % | ||||||||||||||||||
Investment banking and brokerage |
308,712 | 4.8 | 1.8 | |||||||||||||||||||||
Financial services |
188,029 | 3.0 | 1.1 | |||||||||||||||||||||
Commercial and consumer finance |
187,489 | 3.0 | 1.1 | |||||||||||||||||||||
Other |
43,943 | 0.7 | 0.3 | |||||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||
Total finance sector - Corporate bonds |
$ | 1,374,406 | 21.6 | % | 8.0 | % | ||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||
AAA | AA | A | BBB | Non-Investment Grade/Unrated |
Total | |||||||||||||||||||
Credit quality of finance sector - Corporate bonds |
||||||||||||||||||||||||
Banks |
$ | 57,579 | $ | 70,943 | $ | 444,964 | $ | 71,113 | $ | 1,634 | $ | 646,233 | ||||||||||||
Investment banking and brokerage |
| | 284,962 | 22,740 | 1,010 | 308,712 | ||||||||||||||||||
Financial services |
| 159,363 | 22,313 | 5,361 | 992 | 188,029 | ||||||||||||||||||
Commercial and consumer finance |
| 11,636 | 79,245 | 77,231 | 19,377 | 187,489 | ||||||||||||||||||
Other |
| 12,996 | 16,360 | 13,027 | 1,560 | 43,943 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total finance sector - Corporate bonds |
$ | 57,579 | $ | 254,938 | $ | 847,844 | $ | 189,472 | $ | 24,573 | $ | 1,374,406 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
% of total |
4 | % | 18 | % | 62 | % | 14 | % | 2 | % | 100 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Concentration of investment risk
The top 10 Corporate bond issues account for 14.6% of the Companys total corporate bonds. The single largest issue accounts for 1.9% of the Companys total Corporate bonds.
30
PartnerRe Ltd.
Distribution of Equities
(Expressed in thousands of U.S. dollars)
(Unaudited)
September 30, 2012 | ||||||||||||||||
Fair Value | Percentage to Total Fair Value of Equities |
Percentage to Invested Assets and Cash |
Largest Single Issuer as a Percentage of Invested Assets and Cash |
|||||||||||||
Distribution by sector - Equities |
||||||||||||||||
Consumer non-cyclical |
$ | 127,963 | 16.8 | % | 0.7 | % | | % | ||||||||
Energy |
118,502 | 15.5 | 0.7 | 0.1 | ||||||||||||
Finance |
102,057 | 13.4 | 0.6 | 0.1 | ||||||||||||
Technology |
84,125 | 11.0 | 0.5 | 0.1 | ||||||||||||
Communications |
69,182 | 9.1 | 0.4 | | ||||||||||||
Insurance |
64,983 | 8.5 | 0.4 | 0.1 | ||||||||||||
Industrial |
56,220 | 7.4 | 0.3 | 0.1 | ||||||||||||
Consumer cyclical |
55,453 | 7.3 | 0.3 | | ||||||||||||
Utilities |
28,500 | 3.7 | 0.2 | | ||||||||||||
Basic Materials |
28,094 | 3.7 | 0.2 | | ||||||||||||
Real estate investment trusts |
26,023 | 3.4 | 0.1 | 0.1 | ||||||||||||
Diversified |
1,875 | 0.2 | | | ||||||||||||
|
|
|
|
|
|
|||||||||||
Total equities |
$ | 762,977 | 100.0 | % | 4.4 | % | ||||||||||
|
|
|
|
|
|
|||||||||||
Mutual funds and exchange traded funds (ETFs) |
||||||||||||||||
Funds holding fixed income securities |
265,844 | 1.6 | ||||||||||||||
Funds and ETFs holding equities |
42,707 | 0.2 | ||||||||||||||
|
|
|
|
|||||||||||||
Total equities |
$ | 1,071,528 | 6.2 | % | ||||||||||||
|
|
|
|
Concentration of investment risk
The single largest fund in funds and ETFs holding equities is an emerging markets fixed income fund, which accounts for 17.0% of the Companys total equities. Excluding equity securities held in mutual funds and exchange traded funds, the top 10 common stock issuers account for 18.7% of the Companys total equities. Excluding equity securities held in mutual funds and exchange traded funds, the single largest issuer accounts for 3.1% of the Companys total equities.
31
PartnerRe Ltd.
Distribution of Mortgage/Asset-Backed Securities (1)
(Expressed in thousands of U.S. dollars)
(Unaudited)
Fixed Maturities - Mortgage/Asset-Backed Securities by type and by rating
Rating at September 30, 2012 | ||||||||||||||||||||||||||||||||
GNMA | GSEs | AAA | AA | A | BBB | Non-Investment Grade/Unrated |
Total | |||||||||||||||||||||||||
|
|
|||||||||||||||||||||||||||||||
U.S. Asset-Backed Securities |
$ | | $ | | $ | 59,772 | $ | 72,647 | $ | 80,705 | $ | 13,343 | $ | 366,749 | $ | 593,216 | ||||||||||||||||
U.S. Collaterized Mortgage Obligations |
| 2,615 | | 5,745 | | | | 8,360 | ||||||||||||||||||||||||
U.S. Mortgage Backed Securities (MBS) |
667,775 | 2,003,414 | | | | | | 2,671,189 | ||||||||||||||||||||||||
U.S. Commercial Mortgage Backed Securities (CMBS) |
| | 38,203 | | 12,194 | 2,027 | 2,098 | 54,522 | ||||||||||||||||||||||||
U.S. MBS Interest Only |
52,405 | 126,703 | 12,744 | | | | 92,883 | 284,735 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
$ | 720,180 | $ | 2,132,732 | $ | 110,719 | $ | 78,392 | $ | 92,899 | $ | 15,370 | $ | 461,730 | $ | 3,612,022 | |||||||||||||||||
Non-U.S. Asset-Backed Securities |
$ | | $ | | $ | 68,311 | $ | 33,042 | $ | 28,119 | $ | | $ | | $ | 129,472 | ||||||||||||||||
Non-U.S. Collaterized Mortgage Obligations |
| | 179,607 | 39,290 | 51,449 | | | 270,346 | ||||||||||||||||||||||||
Non-U.S. Commercial Mortgage Backed Securities (CMBS) |
| | 23,741 | | | | | 23,741 | ||||||||||||||||||||||||
Non-U.S. Mortgage Backed Securities (MBS) |
| | 85,299 | | | | | 85,299 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
$ | | $ | | $ | 356,958 | $ | 72,332 | $ | 79,568 | $ | | $ | | $ | 508,858 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total mortgage/asset-backed securities |
$ | 720,180 | $ | 2,132,732 | $ | 467,677 | $ | 150,724 | $ | 172,467 | $ | 15,370 | $ | 461,730 | $ | 4,120,880 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Corporate Securities |
| 24,327 | | | | | | 24,327 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total |
$ | 720,180 | $ | 2,157,059 | $ | 467,677 | $ | 150,724 | $ | 172,467 | $ | 15,370 | $ | 461,730 | $ | 4,145,207 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
% of total |
18 | % | 52 | % | 11 | % | 4 | % | 4 | % | | % | 11 | % | 100 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) | In addition to the mortgage/asset-backed securities above, the Company has derivatives exposure to to-be-announced mortgage-backed securities with a notional value of $123.4 million and a carrying value of $1.4 million at September 30, 2012 within Other Invested Assets. |
32
PartnerRe Ltd.
Other Invested Assets including Private Markets and Derivative Exposures
(Expressed in thousands of U.S. dollars)
(Unaudited)
Carrying and Notional Values of Private Markets Investments and Other Invested Assets
September 30, 2012 | June 30, 2012 | December 31, 2011 | ||||||||||||||||||||||||||||||||||||||
Investments | Fair Value of Derivatives |
Carrying Value |
Net Notional Amount of Derivatives |
Total
Net Exposures (1) |
Carrying Value |
Total
Net Exposures (1) |
Carrying Value |
Total Net Exposures (1) |
||||||||||||||||||||||||||||||||
Private Markets Investments |
||||||||||||||||||||||||||||||||||||||||
Principal Finance - Investments |
$ | 133,603 | $ | | $ | 133,603 | $ | | $ | 133,603 | $ | 149,462 | $ | 149,462 | $ | 170,092 | $ | 170,092 | ||||||||||||||||||||||
Principal Finance - Derivative Exposure Assumed |
| (2,603 | ) | (2,603 | ) | 81,380 | 78,777 | (1,851 | ) | 109,861 | (2,174 | ) | 127,114 | |||||||||||||||||||||||||||
Insurance-Linked Securities |
| (1,234 | ) | (1,234 | ) | 155,964 | 154,730 | (5,162 | ) | 150,802 | (968 | ) | 135,407 | |||||||||||||||||||||||||||
Commodities Futures |
| | | | | 1,728 | 43,827 | (1,756 | ) | 46,223 | ||||||||||||||||||||||||||||||
Strategic Investments |
204,653 | | 204,653 | | 204,653 | 189,616 | 189,616 | 179,348 | 179,348 | |||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Total other invested assets - Private Markets Exposure Assumed |
338,256 | (3,837 | ) | 334,419 | 237,344 | 571,763 | 333,793 | 643,568 | 344,542 | 658,184 | ||||||||||||||||||||||||||||||
Other Credit Derivatives - Exposure Assumed |
| 253 | 253 | 5,000 | 5,253 | 272 | 5,272 | 246 | 5,246 | |||||||||||||||||||||||||||||||
Other Credit Derivatives - Protection Purchased |
| (1,055 | ) | (1,055 | ) | (60,000 | ) | (61,055 | ) | (1,120 | ) | (78,579 | ) | (1,193 | ) | (96,154 | ) | |||||||||||||||||||||||
Other (2) |
9,486 | (1,548 | ) | 7,938 | (2,949 | ) | 14,559 | |||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
Total other invested assets |
$ | 347,742 | $ | (6,187 | ) | $ | 341,555 | $ | 329,996 | $ | 358,154 | |||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
(1) | The total net exposures originated in Private Markets are $1,748 million at September 30, 2012 ($1,678 million and $1,629 million at June 30, 2012 and December 31, 2011, respectively) . In addition to the net exposures listed above of $572 million ($644 million and $658 million at June 30, 2012 and December 31, 2011, respectively), the Company has the following other net exposures originated in Private Markets: |
| Principal Finance: $720 million of assets listed under Investments - Fixed Maturities and $7 million listed under Investments - Equities for a total exposure of $939 million ($849 million and $824 million at June 30, 2012 and December 31, 2011, respectively) . |
| Insurance -Linked Securities: $374 million of bonds listed under Investments - Fixed Maturities and $38 million of limits on transactions that use reinsurance accounting for a total exposure of $567 million ($560 million and $562 million at June 30, 2012 and December 31, 2011, respectively) . |
| Strategic Investments: $7 million of assets listed under Investments - Fixed Maturities, $28 million under Investments - Equities, and $2 million of assets listed under Other Assets for a total exposure of $242 million ($225 million and $197 million at June 30, 2012 and December 31, 2011, respectively) . |
(2) | Other includes foreign currency and fixed income hedging instruments used to manage currency and duration exposure, respectively, and other miscellaneous invested assets. |
33
PartnerRe Ltd.
Funds Held - Directly Managed Portfolio
(Expressed in millions of U.S. dollars)
(Unaudited)
September 30, 2012 |
June 30, 2012 |
March 31, 2012 |
December 31, 2011 |
September 30, 2011 |
December 31, 2010 |
|||||||||||||||||||||||||||||||||||||||||||||
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|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||
Investments: |
||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed maturities |
||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. government |
$ | 221 | 21 | % | $ | 222 | 20 | % | $ | 218 | 19 | % | $ | 111 | 11 | % | $ | 111 | 10 | % | $ | 95 | 6 | % | ||||||||||||||||||||||||||
Government Sponsored Enterprises (GSEs) |
136 | 13 | 146 | 14 | 157 | 14 | 158 | 15 | 156 | 13 | 193 | 12 | ||||||||||||||||||||||||||||||||||||||
Non-U.S. sovereign government, supranational and government related |
273 | 25 | 276 | 25 | 290 | 25 | 275 | 26 | 303 | 26 | 385 | 25 | ||||||||||||||||||||||||||||||||||||||
Corporates |
414 | 39 | 419 | 39 | 460 | 40 | 480 | 45 | 531 | 46 | 799 | 52 | ||||||||||||||||||||||||||||||||||||||
Mortgage/asset-backed securities |
| | | | | | | | | | 12 | 1 | ||||||||||||||||||||||||||||||||||||||
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|
|||||||||||||||||||||||||||
Total fixed maturities |
1,044 | 98 | 1,063 | 98 | 1,125 | 98 | 1,024 | 97 | 1,101 | 95 | 1,484 | 96 | ||||||||||||||||||||||||||||||||||||||
Short-term investments |
| | 11 | 1 | 2 | | 18 | 2 | 35 | 3 | 38 | 3 | ||||||||||||||||||||||||||||||||||||||
Other invested assets |
17 | 2 | 15 | 1 | 18 | 2 | 16 | 1 | 18 | 2 | 21 | 1 | ||||||||||||||||||||||||||||||||||||||
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|
|
|
|
|
|
|||||||||||||||||||||||||||
Total investments |
$ | 1,061 | 100 | % | $ | 1,089 | 100 | % | $ | 1,145 | 100 | % | $ | 1,058 | 100 | % | $ | 1,154 | 100 | % | $ | 1,543 | 100 | % | ||||||||||||||||||||||||||
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|
|||||||||||||||||||||||||||
Cash and cash equivalents |
90 | 64 | 47 | 176 | 135 | 129 | ||||||||||||||||||||||||||||||||||||||||||||
Total investments and cash |
$ | 1,151 | $ | 1,153 | $ | 1,192 | $ | 1,234 | $ | 1,289 | $ | 1,672 | ||||||||||||||||||||||||||||||||||||||
Accrued investment income |
15 | 13 | 14 | 14 | 17 | 20 | ||||||||||||||||||||||||||||||||||||||||||||
Other funds held assets/liabilities |
22 | 67 | 58 | 20 | 17 | 80 | ||||||||||||||||||||||||||||||||||||||||||||
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|
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|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||
Total funds held - directly managed |
$ | 1,188 | $ | 1,233 | $ | 1,264 | $ | 1,268 | $ | 1,323 | $ | 1,772 | ||||||||||||||||||||||||||||||||||||||
|
|
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|
|
|
|
|||||||||||||||||||||||||||||||||||||||
Maturity distribution: |
||||||||||||||||||||||||||||||||||||||||||||||||||
One year or less |
$ | 213 | 20 | % | $ | 216 | 20 | % | $ | 192 | 17 | % | $ | 227 | 22 | % | $ | 203 | 18 | % | $ | 289 | 19 | % | ||||||||||||||||||||||||||
More than one year through five years |
622 | 60 | 642 | 60 | 705 | 63 | 573 | 55 | 646 | 57 | 814 | 53 | ||||||||||||||||||||||||||||||||||||||
More than five years through ten years |
182 | 17 | 188 | 17 | 203 | 18 | 215 | 20 | 260 | 23 | 376 | 25 | ||||||||||||||||||||||||||||||||||||||
More than ten years |
27 | 3 | 28 | 3 | 27 | 2 | 27 | 3 | 27 | 2 | 31 | 2 | ||||||||||||||||||||||||||||||||||||||
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|
|
|
|
|||||||||||||||||||||||||||
Subtotal |
1,044 | 100 | 1,074 | 100 | 1,127 | 100 | 1,042 | 100 | 1,136 | 100 | 1,510 | 99 | ||||||||||||||||||||||||||||||||||||||
Mortgage/asset-backed securities |
| | | | | | | | | | 12 | 1 | ||||||||||||||||||||||||||||||||||||||
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|||||||||||||||||||||||||||
Total |
$ | 1,044 | 100 | % | $ | 1,074 | 100 | % | $ | 1,127 | 100 | % | $ | 1,042 | 100 | % | $ | 1,136 | 100 | % | $ | 1,522 | 100 | % | ||||||||||||||||||||||||||
|
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|
|||||||||||||||||||||||||||
Credit quality by market value: (A) |
||||||||||||||||||||||||||||||||||||||||||||||||||
AAA |
12 | % | 14 | % | 15 | % | 22 | % | 23 | % | 45 | % | ||||||||||||||||||||||||||||||||||||||
AA |
61 | 59 | 59 | 50 | 50 | 27 | ||||||||||||||||||||||||||||||||||||||||||||
A |
22 | 23 | 21 | 24 | 23 | 24 | ||||||||||||||||||||||||||||||||||||||||||||
BBB |
5 | 4 | 5 | 4 | 4 | 4 | ||||||||||||||||||||||||||||||||||||||||||||
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|||||||||||||||||||||||||||||||||||||||
100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | |||||||||||||||||||||||||||||||||||||||
|
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|
|||||||||||||||||||||||||||||||||||||||
Expected average duration |
2.9 | Yrs | 2.9 | Yrs | 3.0 | Yrs | 2.7 | Yrs | 2.9 | Yrs | 3.1 | Yrs | ||||||||||||||||||||||||||||||||||||||
Average yield to maturity at market |
1.0 | % | 1.3 | % | 1.4 | % | 1.7 | % | 1.8 | % | 2.4 | % | ||||||||||||||||||||||||||||||||||||||
Average credit quality |
AA | AA | AA | AA | AA | AA |
(A) | The decrease in AAA rated securities and the corresponding increase in AA rated securities at March 31, 2012 compared to December 31, 2011 largely reflects Standard & Poors decision in January 2012 to downgrade 9 Eurozone sovereign governments. While other rating agencies did not take similar action, it is the Companys policy to use Standard & Poors ratings, when available, to rate its investments. |
34
PartnerRe Ltd.
Distribution of Corporate Bonds
Funds Held - Directly Managed Portfolio
(Expressed in thousands of U.S. dollars)
(Unaudited)
September 30, 2012 | ||||||||||||||||||||
Fair Value | Percentage to Total Fair Value of Corporate Bonds |
Percentage to Funds Held - Directly Managed Investments and cash |
Largest Single issuer as a Percentage of Funds Held - Directly Managed Investments and cash |
|||||||||||||||||
Distribution by sector - Corporate bonds |
||||||||||||||||||||
Financial |
$ | 179,192 | 43.2 | % | 15.5 | % | 1.2 | % | ||||||||||||
Consumer noncyclical |
64,416 | 15.5 | 5.6 | 0.8 | ||||||||||||||||
Energy |
50,715 | 12.2 | 4.4 | 0.9 | ||||||||||||||||
Utilities |
27,136 | 6.5 | 2.4 | 0.5 | ||||||||||||||||
Basic Materials |
20,252 | 4.9 | 1.8 | 0.4 | ||||||||||||||||
Government Guaranteed Corporate Debt |
16,835 | 4.1 | 1.5 | 1.1 | ||||||||||||||||
Communications |
16,806 | 4.1 | 1.5 | 0.4 | ||||||||||||||||
Consumer cyclical |
12,815 | 3.1 | 1.1 | 0.7 | ||||||||||||||||
Technology |
12,036 | 2.9 | 1.0 | 0.4 | ||||||||||||||||
Industrial |
9,089 | 2.2 | 0.8 | 0.3 | ||||||||||||||||
Real estate investment trusts |
3,598 | 0.9 | 0.3 | 0.3 | ||||||||||||||||
Insurance |
1,565 | 0.4 | 0.1 | 0.1 | ||||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Total Corporate bonds |
$ | 414,455 | 100.0 | % | 36.0 | % | ||||||||||||||
|
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|
|
|
|
|||||||||||||||
Finance sector - Corporate bonds |
||||||||||||||||||||
Banks |
$ | 105,007 | 25.3 | % | 9.1 | % | ||||||||||||||
Investment Banking & Brokerage |
30,222 | 7.3 | 2.6 | |||||||||||||||||
Financial Services |
25,119 | 6.1 | 2.2 | |||||||||||||||||
Commercial & Consumer Finance |
14,741 | 3.5 | 1.3 | |||||||||||||||||
Other |
4,103 | 1.0 | 0.3 | |||||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Total finance sector - Corporate bonds |
$ | 179,192 | 43.2 | % | 15.5 | % | ||||||||||||||
|
|
|
|
|
|
|||||||||||||||
AAA | AA | A | BBB | Total | ||||||||||||||||
Credit quality of finance sector - Corporate bonds |
||||||||||||||||||||
Banks |
$ | 13,290 | $ | 41,455 | $ | 44,819 | $ | 5,443 | 105,007 | |||||||||||
Investment Banking & Brokerage |
15,614 | | 14,608 | | 30,222 | |||||||||||||||
Financial Services |
142 | 20,444 | 4,533 | | 25,119 | |||||||||||||||
Commercial & Consumer Finance |
| 7,952 | 6,789 | | 14,741 | |||||||||||||||
Other |
| | 4,103 | | 4,103 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total finance sector - Corporate bonds |
$ | 29,046 | $ | 69,851 | $ | 74,852 | $ | 5,443 | $ | 179,192 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
% of total |
16 | % | 39 | % | 42 | % | 3 | % | 100 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
Concentration of investment risk
The Top 10 corporate bond issuers account for 25.2% of the Companys total corporate bonds within the Funds Held - Directly Managed Portfolio. The single largest issuer accounts for 3.5% of the Companys total corporate bonds within the Funds Held - Directly Managed portfolio.
35
PartnerRe Ltd.
Composition of Net Investment Income and Net Realized and Unrealized Investment Gains
(Expressed in thousands of U.S. dollars)
(Unaudited)
For the three months ended | ||||||||||||||||||||
September 30, 2012 |
June 30, 2012 |
March 31, 2012 |
December 31, 2011 |
September 30, 2011 |
||||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Fixed maturities |
$ | 123,540 | $ | 129,900 | $ | 133,490 | $ | 138,233 | $ | 145,861 | ||||||||||
Short-term investments, cash and cash equivalents |
537 | 628 | 596 | 571 | 887 | |||||||||||||||
Equities |
4,684 | 12,992 | 3,513 | 4,758 | 4,322 | |||||||||||||||
Funds held and other |
10,741 | 13,330 | 10,602 | 11,095 | 14,522 | |||||||||||||||
Funds held - directly managed |
6,586 | 7,577 | 8,593 | 11,936 | 9,180 | |||||||||||||||
Investment expenses |
(10,822 | ) | (10,921 | ) | (9,898 | ) | (11,053 | ) | (11,125 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net investment income (1) |
$ | 135,266 | $ | 153,506 | $ | 146,896 | $ | 155,540 | $ | 163,647 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net realized investment gains on fixed maturities and short-term investments |
$ | 43,626 | $ | 62,202 | $ | 17,398 | $ | 73,155 | $ | 63,611 | ||||||||||
Net realized investment gains on equities |
5,495 | 6,370 | 41,421 | 25,136 | 2,480 | |||||||||||||||
Net realized (losses) gains on other invested assets |
(2,604 | ) | (18,321 | ) | 5,205 | (27,529 | ) | (97,741 | ) | |||||||||||
Change in net unrealized (losses) gains on other invested assets |
(1,747 | ) | (14,346 | ) | 20,428 | (1,360 | ) | (212 | ) | |||||||||||
Change in net unrealized investment gains (losses) on fixed maturities and short-term investments |
150,046 | 32,995 | 47,821 | (51,964 | ) | 189,956 | ||||||||||||||
Change in net unrealized investment gains (losses) on equities |
51,260 | (32,963 | ) | 50,771 | 57,314 | (145,095 | ) | |||||||||||||
Net other realized and unrealized investment gains |
1,899 | 406 | 2,961 | 2,400 | 1,193 | |||||||||||||||
Net realized and unrealized investment gains (losses) on funds held - directly managed |
9,454 | 1,789 | 6,730 | (2,599 | ) | 11,947 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net realized and unrealized investment gains |
$ | 257,429 | $ | 38,132 | $ | 192,735 | $ | 74,553 | $ | 26,139 | ||||||||||
|
|
|
|
|
|
|
|
|
|
(1) | Comparisons of net investment income between periods include the impact of foreign exchange variances. For the three months ended September 30, 2012, net investment income includes foreign exchange impacts of ($4.0) million compared to the three months ended September 30, 2011. |
36
PartnerRe Ltd.
Composition of Net Investment Income and Net Realized and Unrealized Investment Gains (Losses)
(Expressed in thousands of U.S. dollars)
(Unaudited)
For the nine months ended | For the year ended | |||||||||||||||||
September 30, 2012 |
September 30, 2011 |
December 31, 2011 |
December 31, 2010 |
|||||||||||||||
|
|
|
|
|||||||||||||||
Fixed maturities |
$ | 386,931 | $ | 423,343 | $ | 561,576 | $ | 580,258 | ||||||||||
Short-term investments, cash and cash equivalents |
1,761 | 3,271 | 3,843 | 8,541 | ||||||||||||||
Equities |
21,189 | 15,056 | 19,815 | 20,794 | ||||||||||||||
Funds held and other |
34,673 | 38,407 | 49,502 | 52,794 | ||||||||||||||
Funds held - directly managed |
22,756 | 25,984 | 37,919 | 51,775 | ||||||||||||||
Investment expenses |
(31,641 | ) | (32,453 | ) | (43,507 | ) | (41,380 | ) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||||
Net investment income (1) |
$ | 435,669 | $ | 473,608 | $ | 629,148 | $ | 672,782 | ||||||||||
|
|
|
|
|
|
|
|
|||||||||||
Net realized investment gains on fixed maturities and short-term investments |
$ | 123,226 | $ | 84,052 | $ | 157,207 | $ | 173,426 | ||||||||||
Net realized investment gains on equities |
53,287 | 65,730 | 90,866 | 44,736 | ||||||||||||||
Net realized losses on other invested assets |
(15,719 | ) | (148,766 | ) | (176,295 | ) | (68,568 | ) | ||||||||||
Change in net unrealized gains (losses) on other invested assets |
4,335 | (44,918 | ) | (46,278 | ) | 3,742 | ||||||||||||
Change in net unrealized investment gains on fixed maturities and short-term investments |
230,862 | 180,189 | 128,224 | 142,634 | ||||||||||||||
Change in net unrealized investment gains (losses) on equities |
69,068 | (159,174 | ) | (101,860 | ) | 64,825 | ||||||||||||
Net other realized and unrealized investment gains |
5,265 | 1,217 | 3,617 | 13,335 | ||||||||||||||
Net realized and unrealized investment gains on funds held - directly managed |
17,972 | 13,810 | 11,211 | 27,352 | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||
Net realized and unrealized investment gains (losses) |
$ | 488,296 | $ | (7,860 | ) | $ | 66,692 | $ | 401,482 | |||||||||
|
|
|
|
|
|
|
|
(1) | Comparisons of net investment income between periods include the impact of foreign exchange variances. For the nine months ended September 30, 2012, net investment income includes foreign exchange impacts of ($6.7) million compared to the nine months ended September 30, 2011. |
37
PartnerRe Ltd.
Composition of Net Investment Income and Net Realized and Unrealized Investment Gains (Losses)
Funds Held - Directly Managed Portfolio
(Expressed in thousands of U.S. dollars)
(Unaudited)
For the three months ended | ||||||||||||||||||||
September 30, 2012 |
June 30, 2012 |
March 31, 2012 |
December 31, 2011 |
September 30, 2011 |
||||||||||||||||
|
|
|||||||||||||||||||
Fixed maturities |
$ | 6,746 | $ | 7,087 | $ | 7,620 | $ | 7,684 | $ | 7,778 | ||||||||||
Short-term investments, cash and cash equivalents |
375 | 167 | 171 | 681 | 667 | |||||||||||||||
Other |
262 | 305 | 716 | 3,779 | 968 | |||||||||||||||
Investment expenses |
(797 | ) | 18 | 86 | (208 | ) | (233 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net investment income |
$ | 6,586 | $ | 7,577 | $ | 8,593 | $ | 11,936 | $ | 9,180 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net realized investment gains (losses) on fixed maturities and short-term investments |
$ | 41 | $ | 108 | $ | (386 | ) | $ | (496 | ) | $ | 121 | ||||||||
Net realized investment gains (losses) on other invested assets |
| | | 49 | (93 | ) | ||||||||||||||
Change in net unrealized investment gains (losses) on fixed maturities and short-term investments |
7,690 | 3,029 | 5,883 | (868 | ) | 14,676 | ||||||||||||||
Change in net unrealized investment gains (losses) on other invested assets |
1,723 | (1,348 | ) | 1,233 | (1,284 | ) | (2,757 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net realized and unrealized investment gains (losses) on funds held - directly managed |
$ | 9,454 | $ | 1,789 | $ | 6,730 | $ | (2,599 | ) | $ | 11,947 | |||||||||
|
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|
|
|
|
|
|
|
|
38
PartnerRe Ltd.
Composition of Net Investment Income and Net Realized and Unrealized Investment Gains
Funds Held - Directly Managed Portfolio
(Expressed in thousands of U.S. dollars)
(Unaudited)
For the nine months ended | For the year ended | |||||||||||||||||
September 30, 2012 |
September 30, 2011 |
December 31, 2011 |
December 31, 2010 |
|||||||||||||||
|
|
|
|
|
|
|||||||||||||
Fixed maturities |
$ | 21,452 | $ | 23,859 | $ | 31,542 | $ | 46,200 | ||||||||||
Short-term investments, cash and cash equivalents |
713 | 1,224 | 1,906 | 1,607 | ||||||||||||||
Other |
1,284 | 1,624 | 5,402 | 6,078 | ||||||||||||||
Investment expenses |
(693 | ) | (723 | ) | (931 | ) | (2,110 | ) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||||
Net investment income |
$ | 22,756 | $ | 25,984 | $ | 37,919 | $ | 51,775 | ||||||||||
|
|
|
|
|
|
|
|
|||||||||||
Net realized investment (losses) gains on fixed maturities and short-term investments |
$ | (238 | ) | $ | 5,866 | $ | 5,369 | $ | 1,041 | |||||||||
Net realized investment (losses) gains of on other invested assets |
| (91 | ) | (42 | ) | 1,635 | ||||||||||||
Change in net unrealized investment gains on fixed maturities and short-term investments |
16,602 | 13,182 | 12,314 | 27,568 | ||||||||||||||
Change in net unrealized investment gains (losses) on other invested assets |
1,608 | (5,147 | ) | (6,430 | ) | (2,892 | ) | |||||||||||
|
|
|
|
|
|
|
|
|||||||||||
Net realized and unrealized investment gains on funds held - directly managed |
$ | 17,972 | $ | 13,810 | $ | 11,211 | $ | 27,352 | ||||||||||
|
|
|
|
|
|
|
|
39
PartnerRe Ltd.
Analysis of Unpaid Losses and Loss Expenses
(Expressed in thousands of U.S. dollars)
(Unaudited)
As at and for the three months ended | ||||||||||||||||||||
September 30, 2012 |
June 30, 2012 |
March 31, 2012 |
December 31, 2011 |
September 30, 2011 |
||||||||||||||||
|
|
|||||||||||||||||||
Reconciliation of beginning and ending liability for unpaid losses and loss expenses: |
||||||||||||||||||||
Gross liability at beginning of period |
$ | 10,661,012 | $ | 11,143,354 | $ | 11,273,091 | $ | 11,352,599 | $ | 12,016,271 | ||||||||||
Reinsurance recoverable at beginning of period |
(331,346 | ) | (335,613 | ) | (353,105 | ) | (359,203 | ) | (378,581 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net liability at beginning of period |
10,329,666 | 10,807,741 | 10,919,986 | 10,993,396 | 11,637,690 | |||||||||||||||
Net incurred losses related to: |
||||||||||||||||||||
Current year |
753,068 | 648,522 | 590,814 | 949,645 | 889,469 | |||||||||||||||
Prior years |
(188,758 | ) | (115,140 | ) | (163,603 | ) | (51,573 | ) | (175,961 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
564,310 | 533,382 | 427,211 | 898,072 | 713,508 | ||||||||||||||||
Change in reserve agreement (1) |
(39,739 | ) | 7,229 | (34,792 | ) | (18,682 | ) | (14,630 | ) | |||||||||||
Net losses paid |
(575,508 | ) | (774,142 | ) | (648,377 | ) | (785,542 | ) | (1,062,917 | ) | ||||||||||
Effects of foreign exchange rate changes |
174,419 | (244,544 | ) | 143,713 | (167,258 | ) | (280,255 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net liability at end of period |
10,453,148 | 10,329,666 | 10,807,741 | 10,919,986 | 10,993,396 | |||||||||||||||
Reinsurance recoverable at end of period |
308,154 | 331,346 | 335,613 | 353,105 | 359,203 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Gross liability at end of period |
$ | 10,761,302 | $ | 10,661,012 | $ | 11,143,354 | $ | 11,273,091 | $ | 11,352,599 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Breakdown of gross liability at end of period: |
||||||||||||||||||||
Case reserves |
$ | 5,000,805 | $ | 5,000,584 | $ | 5,189,842 | $ | 5,187,761 | $ | 5,198,774 | ||||||||||
Additional case reserves |
411,063 | 453,035 | 550,945 | 495,593 | 563,690 | |||||||||||||||
Incurred but not reported reserves |
5,349,434 | 5,207,393 | 5,402,567 | 5,589,737 | 5,590,135 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Gross liability at end of period |
$ | 10,761,302 | $ | 10,661,012 | $ | 11,143,354 | $ | 11,273,091 | $ | 11,352,599 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Breakdown of gross liability at end of period by Non-life sub-segment: |
||||||||||||||||||||
North America |
$ | 3,402,697 | $ | 3,310,449 | $ | 3,292,254 | $ | 3,287,364 | $ | 3,294,447 | ||||||||||
Global (Non-U.S.) P&C |
2,511,342 | 2,478,403 | 2,671,384 | 2,631,593 | 2,726,094 | |||||||||||||||
Global (Non-U.S.) Specialty |
3,773,521 | 3,781,955 | 3,930,158 | 3,922,404 | 3,902,088 | |||||||||||||||
Catastrophe |
1,073,742 | 1,090,205 | 1,249,558 | 1,431,730 | 1,429,970 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Gross liability at end of period |
$ | 10,761,302 | $ | 10,661,012 | $ | 11,143,354 | $ | 11,273,091 | $ | 11,352,599 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Unrecognized time value of non-life reserves |
$ | 465,899 | $ | 493,597 | $ | 618,317 | $ | 560,860 | $ | 614,961 | ||||||||||
Non-life paid loss ratio data: |
||||||||||||||||||||
Non-life paid losses to incurred losses ratio |
102.0 | % | 145.1 | % | 151.8 | % | 87.5 | % | 149.0 | % | ||||||||||
Non-life paid losses to net premiums earned ratio |
55.2 | % | 86.9 | % | 81.5 | % | 80.3 | % | 97.5 | % |
(1) | The change in the reserve agreement is due to (favorable) unfavorable development on Paris Res reserves which are guaranteed by Axa under the reserve agreement. |
40
PartnerRe Ltd.
Analysis of Unpaid Losses and Loss Expenses
(Expressed in thousands of U.S. dollars)
(Unaudited)
As at and for the nine months ended | As at and for the year ended | |||||||||||||||||
September 30, 2012 |
September 30, 2011 |
December 31, 2011 |
December 31, 2010 |
|||||||||||||||
|
|
|
|
|||||||||||||||
Reconciliation of beginning and ending liability for unpaid losses and loss expenses: |
||||||||||||||||||
Gross liability at beginning of period |
$ | 11,273,091 | $ | 10,666,604 | $ | 10,666,604 | $ | 10,811,483 | ||||||||||
Reinsurance recoverable at beginning of period |
(353,105 | ) | (348,747 | ) | (348,747 | ) | (336,352 | ) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||||
Net liability at beginning of period |
10,919,986 | 10,317,857 | 10,317,857 | 10,475,131 | ||||||||||||||
Net incurred losses related to: |
||||||||||||||||||
Current year |
1,992,404 | 3,303,122 | 4,252,766 | 3,137,874 | ||||||||||||||
Prior years |
(467,501 | ) | (478,884 | ) | (530,457 | ) | (477,883 | ) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||||
1,524,903 | 2,824,238 | 3,722,309 | 2,659,991 | |||||||||||||||
Change in reserve agreement (1) |
(67,302 | ) | (42,702 | ) | (61,383 | ) | (66,783 | ) | ||||||||||
Net losses paid |
(1,998,027 | ) | (2,205,017 | ) | (2,990,559 | ) | (2,579,018 | ) | ||||||||||
Effects of foreign exchange rate changes |
73,588 | 99,020 | (68,238 | ) | (171,464 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||||
Net liability at end of period |
10,453,148 | 10,993,396 | 10,919,986 | 10,317,857 | ||||||||||||||
Reinsurance recoverable at end of period |
308,154 | 359,203 | 353,105 | 348,747 | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||
Gross liability at end of period |
$ | 10,761,302 | $ | 11,352,599 | $ | 11,273,091 | $ | 10,666,604 | ||||||||||
|
|
|
|
|
|
|
|
|||||||||||
Breakdown of gross liability at end of period: |
||||||||||||||||||
Case reserves |
$ | 5,000,805 | $ | 5,198,774 | $ | 5,187,761 | $ | 4,652,281 | ||||||||||
Additional case reserves |
411,063 | 563,690 | 495,593 | 326,721 | ||||||||||||||
Incurred but not reported reserves |
5,349,434 | 5,590,135 | 5,589,737 | 5,687,602 | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||
Gross liability at end of period |
$ | 10,761,302 | $ | 11,352,599 | $ | 11,273,091 | $ | 10,666,604 | ||||||||||
|
|
|
|
|
|
|
|
|||||||||||
Breakdown of gross liability at end of period by Non-life sub-segment: |
||||||||||||||||||
North America |
$ | 3,402,697 | $ | 3,294,447 | $ | 3,287,364 | $ | 3,211,622 | ||||||||||
Global (Non-U.S.) P&C |
2,511,342 | 2,726,094 | 2,631,593 | 2,804,937 | ||||||||||||||
Global (Non-U.S.) Specialty |
3,773,521 | 3,902,088 | 3,922,404 | 3,781,341 | ||||||||||||||
Catastrophe |
1,073,742 | 1,429,970 | 1,431,730 | 868,704 | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||
Gross liability at end of period |
$ | 10,761,302 | $ | 11,352,599 | $ | 11,273,091 | $ | 10,666,604 | ||||||||||
|
|
|
|
|
|
|
|
|||||||||||
Unrecognized time value of non-life reserves |
$ | 465,899 | $ | 614,961 | $ | 560,860 | $ | 949,210 | ||||||||||
Non-life paid loss ratio data: |
||||||||||||||||||
Non-life paid losses to incurred losses ratio |
131.0 | % | 78.1 | % | 80.3 | % | 97.0 | % | ||||||||||
Non-life paid losses to net premiums earned ratio |
73.2 | % | 76.6 | % | 77.6 | % | 63.9 | % |
(1) | The change in the reserve agreement is due to favorable development on Paris Res reserves which are guaranteed by Axa under the reserve agreement. |
41
PartnerRe Ltd.
Analysis of Policy Benefits for Life and Annuity Contracts
(Expressed in thousands of U.S. dollars)
(Unaudited)
As at and for the three months ended | ||||||||||||||||||||
September 30, 2012 |
June 30, 2012 |
March 31, 2012 |
December 31, 2011 |
September 30, 2011 |
||||||||||||||||
|
|
|||||||||||||||||||
Reconciliation of beginning and ending policy benefits for life and annuity contracts: |
||||||||||||||||||||
Gross liability at beginning of period |
$ | 1,635,547 | $ | 1,707,982 | $ | 1,645,662 | $ | 1,678,201 | $ | 1,726,180 | ||||||||||
Reinsurance recoverable at beginning of period |
(9,635 | ) | (9,221 | ) | (9,874 | ) | (10,633 | ) | (11,624 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net liability at beginning of period |
1,625,912 | 1,698,761 | 1,635,788 | 1,667,568 | 1,714,556 | |||||||||||||||
Net incurred losses related to: |
||||||||||||||||||||
Current year |
162,638 | 170,889 | 160,204 | 175,199 | 163,065 | |||||||||||||||
Prior years |
(5,811 | ) | 1,866 | (10,929 | ) | (4,067 | ) | 5,053 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
156,827 | 172,755 | 149,275 | 171,132 | 168,118 | ||||||||||||||||
Net losses paid |
(142,721 | ) | (174,862 | ) | (131,047 | ) | (154,225 | ) | (141,734 | ) | ||||||||||
Effects of foreign exchange rate changes |
53,293 | (70,742 | ) | 44,745 | (48,687 | ) | (73,372 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net liability at end of period |
1,693,311 | 1,625,912 | 1,698,761 | 1,635,788 | 1,667,568 | |||||||||||||||
Reinsurance recoverable at end of period |
9,836 | 9,635 | 9,221 | 9,874 | 10,633 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Gross liability at end of period |
$ | 1,703,147 | $ | 1,635,547 | $ | 1,707,982 | $ | 1,645,662 | $ | 1,678,201 | ||||||||||
|
|
|
|
|
|
|
|
|
|
42
PartnerRe Ltd.
Analysis of Policy Benefits for Life and Annuity Contracts
(Expressed in thousands of U.S. dollars)
(Unaudited)
As at and for the nine months ended | As at and for the year ended | |||||||||||||||||
September 30, 2012 |
September 30, 2011 |
December 31, 2011 |
December 31, 2010 |
|||||||||||||||
|
|
|
|
|||||||||||||||
Reconciliation of beginning and ending policy benefits for life and annuity contracts: |
||||||||||||||||||
Gross liability at beginning of period |
$ | 1,645,662 | $ | 1,750,410 | $ | 1,750,410 | $ | 1,615,193 | ||||||||||
Reinsurance recoverable at beginning of period |
(9,874 | ) | (14,739 | ) | (14,739 | ) | (20,465 | ) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||||
Net liability at beginning of period |
1,635,788 | 1,735,671 | 1,735,671 | 1,594,728 | ||||||||||||||
Net incurred losses related to: |
||||||||||||||||||
Current year |
493,730 | 475,572 | 650,771 | 611,795 | ||||||||||||||
Prior years |
(14,874 | ) | 3,556 | (510 | ) | 11,832 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||||
478,856 | 479,128 | 650,261 | 623,627 | |||||||||||||||
Net losses paid (1) |
(448,629 | ) | (564,701 | ) | (718,926 | ) | (419,944 | ) | ||||||||||
Effects of foreign exchange rate changes |
27,296 | 17,470 | (31,218 | ) | (62,740 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||||
Net liability at end of period |
1,693,311 | 1,667,568 | 1,635,788 | 1,735,671 | ||||||||||||||
Reinsurance recoverable at end of period |
9,836 | 10,633 | 9,874 | 14,739 | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||
Gross liability at end of period |
$ | 1,703,147 | $ | 1,678,201 | $ | 1,645,662 | $ | 1,750,410 | ||||||||||
|
|
|
|
|
|
|
|
(1) | Net losses paid for the nine months ended September 30, 2011 and for the year ended December 31, 2011 include an approximate $131 million reduction in policy benefits for life and annuity contracts related to the recapture by the cedant of a large longevity treaty that was written on a funds held basis. Contemporaneously, the treaty was rewritten on a net settled mortality swap basis. |
43
PartnerRe Ltd.
Reserve Development
(Expressed in thousands of U.S. dollars)
(Unaudited)
For the three months ended | ||||||||||||||||||||
September 30, 2012 |
June 30, 2012 |
March 31, 2012 |
December 31, 2011 |
September 30, 2011 |
||||||||||||||||
|
|
|||||||||||||||||||
Prior year net favorable (adverse) reserve development: |
||||||||||||||||||||
Non-life segment: |
||||||||||||||||||||
North America |
$ | 66,621 | $ | 38,764 | $ | 61,717 | $ | 20,178 | $ | 74,769 | ||||||||||
Global (Non-U.S.) P&C |
28,686 | 17,981 | 27,683 | 26,369 | 34,945 | |||||||||||||||
Global (Non-U.S.) Specialty |
90,602 | 58,549 | 55,428 | 6,478 | 30,027 | |||||||||||||||
Catastrophe |
2,849 | (154 | ) | 18,775 | (1,452 | ) | 36,220 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total Non-life net prior year reserve development |
$ | 188,758 | $ | 115,140 | $ | 163,603 | $ | 51,573 | $ | 175,961 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Non-life segment: |
||||||||||||||||||||
Net prior year reserve development due to changes in premiums |
$ | (13,761 | ) | $ | (35,011 | ) | $ | (26,333 | ) | $ | (24,150 | ) | $ | (8,461 | ) | |||||
Net prior year reserve development due to all other factors (2) |
202,519 | 150,151 | 189,936 | 75,723 | 184,422 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total Non-life net prior year reserve development |
$ | 188,758 | $ | 115,140 | $ | 163,603 | $ | 51,573 | $ | 175,961 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Life segment: |
||||||||||||||||||||
Net prior year reserve development due to GMDB (1) |
$ | 5,227 | $ | (4,784 | ) | $ | 9,569 | $ | (32 | ) | $ | (5,475 | ) | |||||||
Net prior year reserve development due to all other factors (2) |
584 | 2,918 | 1,360 | 4,099 | 422 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total Life net prior year reserve development |
$ | 5,811 | $ | (1,866 | ) | $ | 10,929 | $ | 4,067 | $ | (5,053 | ) | ||||||||
|
|
|
|
|
|
|
|
|
|
(1) | The guaranteed minimum death benefit (GMDB) reserves are sensitive to volatility in certain referenced global equity markets. At September 30, 2012, a 10% increase in the referenced global equity market would have decreased reserves by approximately $4.1 million, while a 10% decrease in the referenced global equity market would have increased reserves by approximately $5.2 million. |
(2) | Net prior year reserve development due to all other factors includes, but is not limited to loss experience, changes in assumptions and changes in methodology. |
44
PartnerRe Ltd.
Reserve Development
(Expressed in thousands of U.S. dollars)
(Unaudited)
For the nine months ended | For the year ended | |||||||||||||||||
September 30, 2012 |
September 30, 2011 |
December 31, 2011 |
December 31, 2010 |
|||||||||||||||
|
|
|
|
|||||||||||||||
Prior year net favorable (adverse) reserve development: |
||||||||||||||||||
Non-life segment: |
||||||||||||||||||
North America |
$ | 167,102 | $ | 169,002 | $ | 189,180 | $ | 165,780 | ||||||||||
Global (Non-U.S.) P&C |
74,350 | 89,626 | 115,995 | 97,539 | ||||||||||||||
Global (Non-U.S.) Specialty |
204,579 | 122,497 | 128,975 | 170,931 | ||||||||||||||
Catastrophe |
21,470 | 97,759 | 96,307 | 43,633 | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||
Total Non-life net prior year reserve development |
$ | 467,501 | $ | 478,884 | $ | 530,457 | $ | 477,883 | ||||||||||
|
|
|
|
|
|
|
|
|||||||||||
Non-life segment: |
||||||||||||||||||
Net prior year reserve development due to changes in premiums |
$ | (75,104 | ) | $ | (34,351 | ) | $ | (58,501 | ) | $ | (7,509 | ) | ||||||
Net prior year reserve development due to all other factors (2) |
542,605 | 513,235 | 588,958 | 485,392 | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||
Total Non-life net prior year reserve development |
$ | 467,501 | $ | 478,884 | $ | 530,457 | $ | 477,883 | ||||||||||
|
|
|
|
|
|
|
|
|||||||||||
Life segment: |
||||||||||||||||||
Net prior year reserve development due to GMDB (1) |
$ | 10,012 | $ | 5,277 | $ | 5,245 | $ | 16,725 | ||||||||||
Net prior year reserve development due to all other factors (2) |
4,862 | (8,833 | ) | (4,735 | ) | (28,557 | ) | |||||||||||
|
|
|
|
|
|
|
|
|||||||||||
Total Life net prior year reserve development |
$ | 14,874 | $ | (3,556 | ) | $ | 510 | $ | (11,832 | ) | ||||||||
|
|
|
|
|
|
|
|
(1) | The guaranteed minimum death benefit (GMDB) reserves are sensitive to volatility in certain referenced global equity markets. At September 30, 2012, a 10% increase in the referenced global equity market would have decreased reserves by approximately $4.1 million, while a 10% decrease in the referenced global equity market would have increased reserves by approximately $5.2 million. |
(2) | Net prior year reserve development due to all other factors includes, but is not limited to loss experience, changes in assumptions and changes in methodology. |
45
PartnerRe Ltd.
Natural Catastrophe Probable Maximum Losses (PMLs)
(Expressed in millions of U.S. dollars)
(Unaudited)
Single occurrence estimated net PML exposure (1)
July 1, 2012 | April 1, 2012 | January 1, 2012 | ||||||||||||||||||||||||
Zone | Peril | 1-in-250 year PML |
1-in-500 year PML (Earthquake perils only) |
1-in-250 year PML |
1-in-500 year PML (Earthquake perils only) |
1-in-250 year PML |
1-in-500 year PML (Earthquake perils only) |
|||||||||||||||||||
|
||||||||||||||||||||||||||
U.S. Southeast |
Hurricane |
$ | 1,173 | $ | 1,253 | $ | 1,210 | |||||||||||||||||||
U.S. Northeast |
Hurricane |
1,000 | 1,068 | 1,074 | ||||||||||||||||||||||
U.S. Gulf Coast |
Hurricane |
1,069 | 997 | 977 | ||||||||||||||||||||||
Caribbean |
Hurricane |
272 | 292 | 280 | ||||||||||||||||||||||
Europe |
Windstorm |
927 | 884 | 922 | ||||||||||||||||||||||
Japan |
Typhoon |
164 | 161 | 128 | ||||||||||||||||||||||
California |
Earthquake |
734 | $ | 923 | 856 | $ | 1,072 | 865 | $ | 1,086 | ||||||||||||||||
British Columbia |
Earthquake |
350 | 526 | 355 | 527 | 363 | 542 | |||||||||||||||||||
Japan |
Earthquake |
502 | 543 | 537 | 578 | 802 | 851 | |||||||||||||||||||
Australia |
Earthquake |
468 | 582 | 479 | 626 | 478 | 627 | |||||||||||||||||||
New Zealand |
Earthquake |
320 | 339 | 338 | 378 | 347 | 385 |
(1) | The PML estimates are pre-tax and net of retrocession and reinstatement premiums. The peril zones in this disclosure are major peril zones for the industry. The Company has exposures in other peril zones that can potentially generate losses greater than the PML estimates in this disclosure. |
The Company estimates that the incremental loss at the 1-in-250 year return period from a U.S. hurricane impacting more than one of the three hurricane risk zones in the United States would be 20% higher than the PML of the largest zone impacted. In addition, there is the potential for a hurricane to impact the Caribbean peril zone and one or more U.S. hurricane peril zones.
For more information regarding cautionary language related to the Natural Catastrophe PML disclosure and the forward-looking statements, as well as uncertainties and limitations associated with certain assumptions and the methodology used, you must refer to the PartnerRes Natural Catastrophe PMLs document which is available on the Companys website at www.partnerre. com in the Investor Relations section on the Financial Information page under Supplementary Financial Data.
46
PartnerRe Ltd.
Reconciliation of GAAP and non-GAAP measures
(in thousands of U.S. dollars, except per share data)
(Unaudited)
For the three months ended | ||||||||||||||||||||
September 30, 2012 |
June 30, 2012 |
March 31, 2012 |
December 31, 2011 |
September 30, 2011 |
||||||||||||||||
|
|
|||||||||||||||||||
Reconciliation of GAAP and non-GAAP measures: |
||||||||||||||||||||
Annualized return on beginning diluted book value per common share calculated with net income (loss) per share available to common shareholders (1) |
35.5 | % | 11.8 | % | 24.7 | % | (2.1 | )% | 10.4 | % | ||||||||||
Less: |
||||||||||||||||||||
Annualized net realized and unrealized investment gains, net of tax, on beginning diluted book value per common share (1) |
16.7 | 1.3 | 11.4 | 3.6 | 0.4 | |||||||||||||||
Annualized net foreign exchange gains (losses), net of tax, on beginning diluted book value per common share (1) |
0.1 | 0.1 | (0.1 | ) | 3.2 | | ||||||||||||||
Annualized net interest in earnings (losses) of equity investments, net of tax, on beginning diluted book value per common share (1) |
0.3 | | 0.4 | (0.1 | ) | (0.3 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Annualized operating return on beginning diluted book value per common share (1) |
18.4 | % | 10.4 | % | 13.0 | % | (8.8 | )% | 10.3 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net income (loss) |
$ | 486,706 | $ | 176,146 | $ | 360,141 | $ | (17,643 | ) | $ | 180,123 | |||||||||
Less: |
||||||||||||||||||||
Net realized and unrealized investment gains, net of tax |
221,825 | 18,325 | 159,221 | 56,384 | 6,167 | |||||||||||||||
Net foreign exchange gains (losses), net of tax |
1,418 | 1,277 | (1,630 | ) | 50,150 | (106 | ) | |||||||||||||
Interest in earnings (losses) of equity investments, net of tax |
3,652 | (879 | ) | 5,450 | (1,894 | ) | (4,788 | ) | ||||||||||||
Dividends to preferred shareholders |
15,405 | 15,405 | 15,405 | 15,405 | 14,352 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Operating earnings (loss) available to common shareholders |
$ | 244,406 | $ | 142,018 | $ | 181,695 | $ | (137,688 | ) | $ | 164,498 | |||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Per diluted share: |
||||||||||||||||||||
Net income (loss) |
$ | 7.53 | $ | 2.50 | $ | 5.24 | $ | (0.49 | ) | $ | 2.43 | |||||||||
Less: |
||||||||||||||||||||
Net realized and unrealized investment gains, net of tax |
3.55 | 0.29 | 2.42 | 0.85 | 0.09 | |||||||||||||||
Net foreign exchange gains (losses), net of tax |
0.02 | 0.02 | (0.02 | ) | 0.75 | | ||||||||||||||
Interest in earnings (losses) of equity investments, net of tax |
0.06 | (0.01 | ) | 0.08 | (0.03 | ) | (0.07 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Operating earnings (loss) |
$ | 3.90 | $ | 2.20 | $ | 2.76 | $ | (2.06 | ) | $ | 2.41 | |||||||||
|
|
|
|
|
|
|
|
|
|
(1) | Excluding preferred shares of $893,750 at January 1, 2012 and $520,000 at January 1, 2011. |
47
PartnerRe Ltd.
Reconciliation of GAAP and non-GAAP measures
(in thousands of U.S. dollars, except per share data)
(Unaudited)
For the nine months ended | For the year ended | |||||||||||||||||
September 30, 2012 |
September 30, 2011 |
December 31, 2011 |
December 31, 2010 (2) |
|||||||||||||||
|
|
|
|
|||||||||||||||
Reconciliation of GAAP and non-GAAP measures: |
||||||||||||||||||
Annualized return on beginning diluted book value per common share calculated with net income (loss) per share available to common shareholders (1) |
23.9 | % | (11.2 | )% | (9.0 | )% | 12.4 | % | ||||||||||
Less: |
||||||||||||||||||
Annualized net realized and unrealized investment gains (losses), net of tax, on beginning diluted book value per common share (1) |
9.8 | (0.9 | ) | 0.2 | 4.6 | |||||||||||||
Annualized net foreign exchange gains, net of tax, on beginning diluted book value per common share (1) |
| 0.4 | 1.0 | 0.2 | ||||||||||||||
Annualized net interest in earnings (losses) of equity investments, net of tax, on beginning diluted book value per common share (1) |
0.2 | (0.1 | ) | (0.1 | ) | 0.2 | ||||||||||||
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|
|
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|
|
|
|
|||||||||||
Annualized operating return on beginning diluted book value per common share (1) |
13.9 | % | (10.6 | )% | (10.1 | )% | 7.4 | % | ||||||||||
|
|
|
|
|
|
|
|
|||||||||||
Net income (loss) |
$ | 1,022,994 | $ | (502,648 | ) | $ | (520,291 | ) | $ | 852,552 | ||||||||
Less: |
||||||||||||||||||
Net realized and unrealized investment gains (losses), net of tax |
399,371 | (41,280 | ) | 15,104 | 301,462 | |||||||||||||
Net foreign exchange gains, net of tax |
1,065 | 16,284 | 66,433 | 12,847 | ||||||||||||||
Interest in earnings (losses) of equity investments, net of tax |
8,223 | (5,345 | ) | (7,239 | ) | 11,911 | ||||||||||||
Dividends to preferred shareholders |
46,216 | 31,614 | 47,020 | 34,525 | ||||||||||||||
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|
|
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|
|||||||||||
Operating earnings (loss) available to common shareholders |
$ | 568,119 | $ | (503,921 | ) | $ | (641,609 | ) | $ | 491,807 | ||||||||
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|
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Per diluted share: |
||||||||||||||||||
Net income (loss) |
$ | 15.19 | $ | (7.88 | ) | $ | (8.40 | ) | $ | 10.46 | ||||||||
Less: |
||||||||||||||||||
Net realized and unrealized investment gains (losses), net of tax |
6.21 | (0.61 | ) | 0.23 | 3.86 | |||||||||||||
Net foreign exchange gains, net of tax |
0.01 | 0.24 | 0.98 | 0.16 | ||||||||||||||
Interest in earnings (losses) of equity investments, net of tax |
0.13 | (0.08 | ) | (0.11 | ) | 0.15 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||||
Operating earnings (loss) |
$ | 8.84 | $ | (7.43 | ) | $ | (9.50 | ) | $ | 6.29 | ||||||||
|
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|
|
|
|
|
|
(1) | Excluding preferred shares of $893,750 at January 1, 2012 and $520,000 at January 1, 2011 and 2010. |
(2) | See basis of presentation for a discussion of the Companys redefinition of its Operating Earnings (Loss), Operating Earnings (Loss) per diluted common share and Annualized Operating ROE non-GAAP measures. All periods presented reflect the redefined non-GAAP measures and are as previously published except for the year ended December 31, 2010. For a reconciliation of the previously published non-GAAP measures for the year ended December 31, 2010 to the redefined non-GAAP measures, see the Companys financial supplement as of December 31, 2011. |
48
PartnerRe Ltd.
Reconciliation of GAAP and non-GAAP measures
(in thousands of U.S. dollars or shares, except per share data)
(Unaudited)
September 30, 2012 |
June 30, 2012 |
March 31, 2012 |
December 31, 2011 |
September 30, 2011 |
December 31, 2010 |
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|
|
|
|||||||||||||||||||||||
Reconciliation of GAAP and non-GAAP measures: |
||||||||||||||||||||||||||
Shareholders equity |
$ | 7,079,002 | $ | 6,697,593 | $ | 6,786,871 | $ | 6,467,542 | $ | 6,707,683 | $ | 7,206,919 | ||||||||||||||
Less: |
||||||||||||||||||||||||||
Preferred shares, aggregate liquidation value |
893,750 | 893,750 | 893,750 | 893,750 | 893,750 | 520,000 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Common shareholders equity |
6,185,252 | 5,803,843 | 5,893,121 | 5,573,792 | 5,813,933 | 6,686,919 | ||||||||||||||||||||
Less: |
||||||||||||||||||||||||||
Net unrealized gains on fixed income securities and funds held - directly managed, net of tax |
682,956 | 541,202 | 504,386 | 451,946 | 501,803 | 364,032 | ||||||||||||||||||||
|
|
|
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|
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|
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|
|
|
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Book value excluding net unrealized gains or losses on fixed income securities and funds held - directly managed, net of tax |
$ | 5,502,296 | $ | 5,262,641 | $ | 5,388,735 | $ | 5,121,846 | $ | 5,312,130 | $ | 6,322,887 | ||||||||||||||
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|
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Divided by: |
||||||||||||||||||||||||||
Number of common shares and common share equivalents outstanding |
62,136.1 | 63,164.5 | 65,751.6 | 65,715.7 | 68,188.1 | 71,312.3 | ||||||||||||||||||||
Equals: |
||||||||||||||||||||||||||
Diluted book value per common share and common share equivalents outstanding, excluding net unrealized gains or losses on fixed income securities and funds held - directly managed, net of tax |
$ | 88.55 | $ | 83.32 | $ | 81.96 | $ | 77.94 | $ | 77.90 | $ | 88.66 | ||||||||||||||
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49
PartnerRe Ltd.
Diluted Book Value per Common Share - Treasury Stock Method (1)
(in thousands of U.S. dollars or shares, except per share data)
(Unaudited)
September 30, 2012 |
June 30, 2012 |
March 31, 2012 |
December 31, 2011 |
September 30, 2011 |
December 31, 2010 |
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|
|
|
|
|||||||||||||||||||||||
Basic book value per common share |
||||||||||||||||||||||||||
Total shareholders equity |
$ | 7,079,002 | $ | 6,697,593 | $ | 6,786,871 | $ | 6,467,542 | $ | 6,707,683 | $ | 7,206,919 | ||||||||||||||
Less: preferred shares, aggregate liquidation value |
(893,750 | ) | (893,750 | ) | (893,750 | ) | (893,750 | ) | (893,750 | ) | (520,000 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Common shareholders equity |
$ | 6,185,252 | $ | 5,803,843 | $ | 5,893,121 | $ | 5,573,792 | $ | 5,813,933 | $ | 6,686,919 | ||||||||||||||
Basic common shares outstanding |
61,366.7 | 62,557.5 | 65,313.0 | 65,322.3 | 67,749.4 | 69,986.2 | ||||||||||||||||||||
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|
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Basic book value per common share |
$ | 100.79 | $ | 92.78 | $ | 90.23 | $ | 85.33 | $ | 85.82 | $ | 95.55 | ||||||||||||||
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|
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Diluted book value per common share |
||||||||||||||||||||||||||
Common shareholders equity |
$ | 6,185,252 | $ | 5,803,843 | $ | 5,893,121 | $ | 5,573,792 | $ | 5,813,933 | $ | 6,686,919 | ||||||||||||||
Basic common shares outstanding |
61,366.7 | 62,557.5 | 65,313.0 | 65,322.3 | 67,749.4 | 69,986.2 | ||||||||||||||||||||
Add: Stock options and other |
2,297.4 | 1,968.6 | 1,099.2 | 809.4 | 688.6 | 3,293.4 | ||||||||||||||||||||
Add: Restricted stock units |
877.6 | 877.5 | 780.9 | 489.0 | 573.9 | 940.4 | ||||||||||||||||||||
Less: Stock options and other bought back via treasury stock method |
(2,405.6 | ) | (2,239.1 | ) | (1,441.5 | ) | (905.0 | ) | (823.8 | ) | (2,907.7 | ) | ||||||||||||||
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|
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Diluted common shares and common share equivalents outstanding |
62,136.1 | 63,164.5 | 65,751.6 | 65,715.7 | 68,188.1 | 71,312.3 | ||||||||||||||||||||
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|
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|
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Diluted book value per common share |
$ | 99.54 | $ | 91.88 | $ | 89.63 | $ | 84.82 | $ | 85.26 | $ | 93.77 | ||||||||||||||
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(1) | This method assumes that proceeds received upon exercise of options will be used to repurchase the Companys common shares at the average market price. Unvested restricted stock and the dilutive impact of the Companys forward sale contracts, if any, are also added to determine the diluted common shares and common share equivalents outstanding. |
50
PartnerRe Ltd.
Diluted Book Value per Common Share - Rollforward
(in millions of U.S. dollars, except per share data)
(Unaudited)
As at and for the three months ended September 30, 2012 |
As at and for the three months ended September 30, 2011 |
|||||||||||||||||
Common shareholders equity |
Diluted book value per common share |
Common shareholders equity |
Diluted book value per common share |
|||||||||||||||
Common shareholders equity / diluted book value per common share at beginning of period |
$ | 5,804 | $ | 91.88 | $ | 5,738 | $ | 83.71 | ||||||||||
Technical result |
269 | 4.29 | 150 | 2.20 | ||||||||||||||
Other operating expenses |
(95 | ) | (1.51 | ) | (104 | ) | (1.52 | ) | ||||||||||
Net investment income |
135 | 2.16 | 164 | 2.40 | ||||||||||||||
Amortization of intangible assets |
(9 | ) | (0.14 | ) | (9 | ) | (0.14 | ) | ||||||||||
Other, net |
(10 | ) | (0.15 | ) | (12 | ) | (0.16 | ) | ||||||||||
Operating income tax expense |
(31 | ) | (0.50 | ) | (11 | ) | (0.16 | ) | ||||||||||
Preferred dividends |
(15 | ) | (0.25 | ) | (14 | ) | (0.21 | ) | ||||||||||
|
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|
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|
|
|
|||||||||||
Operating earnings |
244 | 3.90 | 164 | 2.41 | ||||||||||||||
Net realized and unrealized investment gains, net of tax |
222 | 3.55 | 6 | 0.09 | ||||||||||||||
Net foreign exchange gains (losses), net of tax |
2 | 0.02 | | | ||||||||||||||
Interest in earnings (losses) of equity investments, net of tax |
4 | 0.06 | (4 | ) | (0.07 | ) | ||||||||||||
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|
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|
|||||||||||
Net income available to common shareholders |
472 | 7.53 | 166 | 2.43 | ||||||||||||||
Common share dividends |
(38 | ) | (0.62 | ) | (41 | ) | (0.60 | ) | ||||||||||
Change in currency translation adjustment |
33 | 0.53 | (55 | ) | (0.81 | ) | ||||||||||||
(Repurchase) issuance of common shares, net |
(85 | ) | 0.41 | 5 | 0.05 | |||||||||||||
Change in other accumulated comprehensive income or loss, net of tax |
(1 | ) | (0.01 | ) | 1 | 0.02 | ||||||||||||
Impact of change in number of common and common share equivalents outstanding |
n/a | (0.18 | ) | n/a | 0.46 | |||||||||||||
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|
|||||||||||
Common shareholders equity / diluted book value per common share at end of period |
$ | 6,185 | $ | 99.54 | $ | 5,814 | $ | 85.26 | ||||||||||
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51
PartnerRe Ltd.
Diluted Book Value per Common Share - Rollforward
(in millions of U.S. dollars, except per share data)
(Unaudited)
As of and for the nine months ended September 30, 2012 |
As of and for the nine months ended September 30, 2011 |
|||||||||||||||||
Common shareholders equity |
Diluted book value per common share |
Common shareholders equity |
Diluted book value per common share |
|||||||||||||||
Common shareholders equity / diluted book value per common share at beginning of period |
$ | 5,574 | $ | 84.82 | $ | 6,687 | $ | 93.77 | ||||||||||
Technical result |
623 | 9.69 | (537 | ) | (7.91 | ) | ||||||||||||
Other operating expenses |
(299 | ) | (4.65 | ) | (322 | ) | (4.75 | ) | ||||||||||
Net investment income |
436 | 6.78 | 474 | 6.99 | ||||||||||||||
Amortization of intangible assets |
(27 | ) | (0.42 | ) | (27 | ) | (0.41 | ) | ||||||||||
Other, net |
(29 | ) | (0.44 | ) | (32 | ) | (0.47 | ) | ||||||||||
Operating income tax expense |
(90 | ) | (1.40 | ) | (28 | ) | (0.41 | ) | ||||||||||
Preferred dividends |
(46 | ) | (0.72 | ) | (32 | ) | (0.47 | ) | ||||||||||
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|
|
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|
|
|
|||||||||||
Operating earnings (loss) |
568 | 8.84 | (504 | ) | (7.43 | ) | ||||||||||||
Net realized and unrealized investment gains (losses), net of tax |
400 | 6.21 | (41 | ) | (0.61 | ) | ||||||||||||
Net foreign exchange gains, net of tax |
1 | 0.01 | 16 | 0.24 | ||||||||||||||
Interest in earnings (losses) of equity investments, net of tax |
8 | 0.13 | (5 | ) | (0.08 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||||
Net income (loss) available to common shareholders |
977 | 15.19 | (534 | ) | (7.88 | ) | ||||||||||||
Common share dividends |
(118 | ) | (1.86 | ) | (118 | ) | (1.75 | ) | ||||||||||
Change in currency translation adjustment |
31 | 0.48 | (11 | ) | (0.16 | ) | ||||||||||||
Repurchase of common shares, net |
(278 | ) | 1.27 | (197 | ) | 0.24 | ||||||||||||
Preferred shares issuance costs |
| | (12 | ) | (0.18 | ) | ||||||||||||
Change in other accumulated comprehensive income or loss, net of tax |
(1 | ) | 0.01 | (1 | ) | (0.01 | ) | |||||||||||
Impact of change in number of common and common share equivalents outstanding |
n/a | (0.37 | ) | n/a | 1.23 | |||||||||||||
|
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|
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Common shareholders equity / diluted book value per common share at end of period |
$ | 6,185 | $ | 99.54 | $ | 5,814 | $ | 85.26 | ||||||||||
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52
PartnerRe Ltd.
Diluted Book Value per Common Share - Rollforward
(in millions of U.S. dollars, except per share data)
(Unaudited)
As at and for the year ended December 31, 2011 |
As at and for the year ended December 31, 2010 |
|||||||||||||||||
Common shareholders equity |
Diluted book value per common share |
Common shareholders equity |
Diluted book value per common share |
|||||||||||||||
Common shareholders equity / diluted book value per common share at beginning of period |
$ | 6,687 | $ | 93.77 | $ | 7,126 | $ | 84.51 | ||||||||||
Technical result |
(663 | ) | (9.82 | ) | 520 | 6.65 | ||||||||||||
Other operating expenses |
(435 | ) | (6.44 | ) | (540 | ) | (6.90 | ) | ||||||||||
Net investment income |
629 | 9.31 | 673 | 8.60 | ||||||||||||||
Amortization of intangible assets |
(36 | ) | (0.54 | ) | (31 | ) | (0.40 | ) | ||||||||||
Other, net |
(42 | ) | (0.61 | ) | (33 | ) | (0.43 | ) | ||||||||||
Operating income tax expense |
(48 | ) | (0.71 | ) | (62 | ) | (0.79 | ) | ||||||||||
Preferred dividends |
(47 | ) | (0.69 | ) | (35 | ) | (0.44 | ) | ||||||||||
|
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|
|
|
|
|
|
|||||||||||
Operating (loss) earnings |
(642 | ) | (9.50 | ) | 492 | 6.29 | ||||||||||||
Net realized and unrealized investment gains, net of tax |
15 | 0.23 | 301 | 3.86 | ||||||||||||||
Net foreign exchange gains, net of tax |
67 | 0.98 | 13 | 0.16 | ||||||||||||||
Interest in (losses) earnings of equity investments, net of tax |
(7 | ) | (0.11 | ) | 12 | 0.15 | ||||||||||||
|
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|
|
|
|
|
|
|||||||||||
Net (loss) income available to common shareholders |
(567 | ) | (8.40 | ) | 818 | 10.46 | ||||||||||||
Common share dividends |
(159 | ) | (2.35 | ) | (158 | ) | (2.05 | ) | ||||||||||
Change in currency translation adjustment |
(12 | ) | (0.17 | ) | (67 | ) | (0.85 | ) | ||||||||||
Repurchase of common shares, net |
(358 | ) | 0.93 | (1,018 | ) | 1.15 | ||||||||||||
Preferred shares issuance costs |
(12 | ) | (0.18 | ) | | | ||||||||||||
Change in other accumulated comprehensive income or loss, net of tax |
(5 | ) | (0.07 | ) | (14 | ) | (0.18 | ) | ||||||||||
Impact of change in number of common and common share equivalents outstanding |
n/a | 1.29 | n/a | 0.73 | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||
Common shareholders equity / diluted book value per common share at end of period |
$ | 5,574 | $ | 84.82 | $ | 6,687 | $ | 93.77 | ||||||||||
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53
Exhibit 99.3
News Release |
PartnerRe Ltd. Declares Quarterly Dividend of $0.62 Per Ordinary Share
PEMBROKE, Bermuda, October 31, 2012 PartnerRe Ltd. (NYSE,Euronext:PRE) today announced that its Board of Directors has declared a dividend of $0.62 per common share.
The dividend will be payable on November 30, 2012, to common shareholders of record on November 19, 2012, with the stock trading ex-dividend commencing November 15, 2012.
PartnerRe Ltd. is a leading global reinsurer, providing multi-line reinsurance to insurance companies. The Company, through its wholly owned subsidiaries, also offers capital markets products that include weather and credit protection to financial, industrial and service companies. Risks reinsured include property, casualty, motor, agriculture, aviation/space, catastrophe, credit/surety, engineering, energy, marine, specialty property, specialty casualty, multiline and other lines, mortality, longevity and health, and alternative risk products. For the year ended December 31, 2011, total revenues were $5.4 billion. At June 30, 2012, total assets were $23.1 billion, total capital was $7.5 billion and total shareholders equity was $6.7 billion.
PartnerRe on the Internet: www.partnerre.com
Contacts: | PartnerRe Ltd. (441) 292-0888 Investor Contact: Robin Sidders Media Contact: Celia Powell |
Sard Verbinnen & Co. (212) 687-8080 Drew Brown/Daniel Goldstein |
PartnerRe Ltd. Wellesley House, 5th Floor 90 Pitts Bay Road Pembroke, Bermuda HM 08 |
Telephone +1 441 292 0888 Fax +1 441 292 6080 www.partnerre.com |
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